The Australian Transaction Reports and Analysis Centre (AUSTRAC) has recently launched an enforcement AUSTRAC investigation into Hillside (Australia New Media), the entity behind the widely known brand bet365. This move comes as part of AUSTRAC’s ongoing efforts to uphold regulatory compliance and combat financial crimes within the gambling sector.
The primary focus of the investigation is to ascertain whether bet365 has adhered to its obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). AUSTRAC’s decision to probe bet365 follows a comprehensive supervisory campaign to scrutinize corporate bookmakers, coupled with a meticulous review of an external audit report mandated for bet365.
Brendan Thomas, the CEO of AUSTRAC, emphasized the critical importance for corporate bookmakers to establish robust systems capable of effectively managing and mitigating risks associated with money laundering and terrorism financing. Thomas highlighted the inherent vulnerability of businesses lacking adequate risk management protocols, warning of the potential exploitation by criminal elements.
To promote compliance and safeguard against illicit activities, AUSTRAC wields a diverse array of regulatory tools and enforcement powers. The agency remains steadfast in its commitment to taking decisive action upon identifying suspected non-compliance within the industry.
As the investigation into bet365 progresses, AUSTRAC refrains from providing detailed commentary, citing the sensitive and ongoing nature of the inquiry.
This development echoes a precedent set in May 2023, when Crown Resorts, a prominent player in the gambling industry, faced substantial penalties and regulatory actions for breaches of AML/CTF Act provisions. In a landmark decision, the Federal Court approved a civil penalty amounting to AU$450 million (equivalent to US$296 million) against Crown Resorts, underscoring the severity of regulatory infringements in the sector.
The initiation of an investigation into bet365 underscores the imperative for stringent regulatory oversight and underscores the resolve of authorities to uphold the integrity of Australia’s financial system. As AUSTRAC investigation continues its inquiry, stakeholders await further developments with keen interest, recognizing the broader implications for the gambling industry’s compliance landscape.
