Gambling Operators Face Stricter AUSTRAC Oversight
LISTEN TO THIS ARTICLE:The CEO of Australia’s anti-money laundering regulator (AUSTRAC), Brendan Thomas, has warned the gambling industry that the agency is doubling down on enforcement in the gambling sector and won’t hesitate to act against companies that fail to meet their legal obligations.
Speaking at the Regulating the Game conference in Sydney on Thursday, Thomas said that AUSTRAC has several ongoing investigations in the gambling industry. These include long-running compliance cases against casino operator Star Entertainment Group and online betting company Entain.
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While AUSTRAC remains open to working with industry stakeholders to achieve compliance, Thomas made it clear that its tolerance has limits.
I’ve been the CEO of AUSTRAC for just over a year, and I’m so proud of the work we’ve done to reduce harm to our community. But while I’ve been working with the industry and our reporting entities to reduce that harm, AUSTRAC is not in the business of continuing to educate without action. It is important that businesses understand their legal obligations because I’m prepared to take strong and swift action where it is warranted … Your services in the gambling industry have been subject to a regulatory regime for many years now, and it is your responsibility to comply.
Operators Urged to Conduct Risk Assessments
Thomas spoke of the increasingly complex risk landscape licensed operators face in Australia. He pointed to factors such as the digitization of currency, the expansion of financial systems, the growing need for advanced customer verification, and heightened competition in online gaming. Given these challenges, he called on all operators, regardless of size, to conduct thorough risk assessments to identify potential vulnerabilities.
This aligns with the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024, which was passed last year. The updated legislation broadens AUSTRAC’s oversight to include real estate professionals, lawyers, accountants, trust and company service providers, and dealers in precious stones and metals. It also revises compliance requirements for existing regulated entities.
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A Tougher Yet More Collaborative AUSTRAC
Despite AUSTRAC’s pledge to take stronger action against non-compliance, Thomas said the agency is also committed to improving communication with the industries it regulates.
He explained that there are internal changes underway, including the creation of functions “dedicated to forming proper partnerships with our regulated industries.” He added that AUSTRAC is committed to working with regulated industries that wish to comply with the law and said that the agency “will also be much more transparent about our legal stance on various issues and upfront about the risks we are identifying.”
Thomas also spoke about the way that illegal funds have a direct and negative impact on Australians, fueling serious crimes such as drug trafficking, fraud, child exploitation, and human trafficking, and as such, he called on gambling operators to take their regulatory responsibilities seriously.
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