The Australian Transaction Reports and Analysis Centre (AUSTRAC) has initiated a legal investigation into bet365’s domestic subsidiary Hillside. Reports suggest that the gaming firm may be in breach of the national Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act), triggering this scrutiny by the regulatory body.
AUSTRAC’s new investigation has been propelled by a preceding supervisory evaluation of companies in the commercial betting industry. The regulatory body also took into account an external audit report that it received after ordering bet365 to hire an external auditor.
The ongoing investigation by AUSTRAC will delve into Hillside’s operations to ascertain whether the company has indeed violated its AML and CTF duties. Armed with a broad array of regulatory tools and enforcement capabilities, AUSTRAC is determined to assess the subsidiary’s culpability and assured swift action upon identifying non-conformities.
Compliance is Non-Negotiable for Regulated Firms
The CEO of AUSTRAC, Brendan Thomas, released a statement in light of this investigation. He underscored the critical role of betting operators in thwarting monetary crimes. Just like any other regulated entities, bookies have a role in stopping fraudulent activities such as money laundering and financing of terrorism.
In order to fulfill their responsibilities effectively, Thomas emphasized that commercial gambling operators must maintain effective systems to manage and mitigate risks. He warned that companies without appropriate systems could inadvertently become conduits for criminal activities.
Businesses that lack adequate measures to counter these risks expose themselves to criminal abuse.
Brendan Thomas, CEO, AUSTRAC
The specifics concerning the ongoing investigation have yet to be unveiled by either Thomas or AUSTRAC.
Regulation is high on the agenda in Australia. As an instance, the Australian Communications and Media Authority (ACMA) has recently addressed many unregistered betting websites. A recent wave of bans imposed by the regulator targeted a dozen such operators.
Meanwhile, Australia persists in stiffening its gambling regulations, much to sports betting companies’ chagrin. An imminent prohibition on gambling advertisements in the country could dynamically alter the industry. The impending regulation has recently prompted Ladbrokes and Neds, owned by Entain, to withdraw from the Responsible Wagering Australia group.
