Australian anti-money laundering body AUSTRAC has ordered bet365 to overhaul its AML controls after an investigation.
AUSTRAC said it discovered “serious gaps” in how the Stoke-based business manages risk and reports suspicious activity, and has ordered it to strengthen its AML controls.
As a result, bet365 has today (6 July) entered into a legally binding enforceable undertaking requiring the company to overhaul its systems, including establishing an ongoing risk assessment approach and strengthening how it detects and reports suspicious transactions.
The action follows an AUSTRAC investigation triggered by an independent audit of bet365’s operations.
AUSTRAC CEO Brendan Thomas said: “Gambling businesses pose an inherent money laundering risk and we are focusing on the risks to the Australian economy from money laundering through this sector.”
The move comes amid increased scrutiny across the sector by the body, which is currently pursuing Federal Court action against Entain and has taken previous action against the Flutter brand Sportsbet, which was recently cleared after AML remediation.
Meanwhile, Entain has put aside A$100m (€60.7m) to cover the potential AUSTRAC penalty down the road.
According to AUSTRAC, the enforceable undertaking sets minimum standards bet365 must meet and makes those obligations directly enforceable, with breaches attracting civil penalty consequences under both the undertaking and the Act.
Thomas added: “The gambling industry processes large volumes of money at high speed, often through anonymous digital channels. This creates opportunities criminals look to exploit.
“This means businesses need to continuously improve their systems to assess risks and monitor for suspicious activity because when controls fall behind, the consequences extend beyond a single company.”
On the land-based side, New Zealand’s SkyCity and the pokies giant Mounties were two B2C operator’s that fell afoul of AUSTRAC’s stringent standards last year.
