The Australian Transaction Reports and Analysis Centre (Austrac), Australia's anti-money laundering and terrorist funding watchdog, is moving forward with legal proceedings against Tabcorp claiming that its failure to comply with laws regarding anti-money laundering and counter-terrorism puts Australia’s financial system at risk.
Prior to pursuing legal action against the gambling group, Austrac conducted a review of Tabcorp’s anti-money laundering and counter-terrorism financing compliance, which revealed that Tabcorp hadn’t made the necessary improvements.
“Noncompliance of this nature provides opportunities for organised crime to exploit vulnerabilities and puts at risk the integrity of the Australian financial system,” said Austrac in a statement.
“Austrac works to keep dirty money out of our financial system, which helps protect the Australian community from serious and organised crime.”
Tabcorp also issued a statement saying:
"Tabcorp Holdings Limited announces that it has been advised today that civil proceedings have been brought by the CEO of Australian Transaction Reports and Analysis Centre (AUSTRAC) against Tabcorp Holdings Limited and Tabcorp’s NSW and Victorian wagering businesses.
“Tabcorp takes its compliance obligations extremely seriously [and is] reviewing the nature of the proceedings and will inform the market of its intended response.”