Having taken a sword to Australia’s “big three” casino operators, financial crime watchdog AUSTRAC appears to have set its sights on tier two after instructing Townsville’s The Ville Resort-Casino and Darwin’s Mindil Beach Casino Resort to appoint external auditors to assess their AML/CTF compliance.
In a Friday statement, AUSTRAC said it had determined to take action after identifying potential gaps and deficiencies in the AML/CTF controls, risk and oversight of the two regional Australian properties.
“Although they may be smaller than entities such as Crown Resorts and The Star, like all gambling venues, The Ville and Mindil Beach face heightened risk of exploitation by criminals,” said AUSTRAC CEO Brendan Thomas, noting that the presence of slot machines and gaming tables brought elevated risk of money laundering.
“AUSTRAC is serious about driving illicit money out of the gambling industry in Australia and making sure businesses that facilitate gambling have strong money laundering controls.
“This action follows major actions we have taken against other casinos – Crown Resorts, SkyCity and The Star – and online bookmakers Entain, Sportsbet and Bet 365.
“My message to boards and CEOs of gambling business, including pubs and clubs with gaming machines, is to make sure you comply with Australian money laundering laws and take your responsibility to tackle money laundering seriously; we are watching and we will take further action.
“Money laundering harms our economy and it allows criminals to profit from some of the most awful crimes – we need to stamp it out.”
AUSTRAC elaborated that the audits will be expected to determine how effective the two properties have been in:
- Maintaining an AML/CTF (anti-money laundering/counter-terrorism financing) program that identifies, mitigates and manages money laundering and terrorism financing (ML/TF) risks
- Undertaking an appropriate ML/TF risk assessment that considers the risk faced by their business, its customer base and the methods by which they deliver their services
- Ensuring a framework through which boards and senior management have ongoing oversight of the AML/CTF program
- Appropriately monitoring customers with a view to identifying, mitigating and managing the money laundering or the terrorism financing risks they face
“Businesses should not be making it easy for criminals to use them for illicit purposes,” said Thomas.
“If you’re properly managing a compliant AML/CTF program, it is going to deter criminal behaviour and help us drive criminal activity out of your industry.”
AUSTRAC added that the results of the audits will determine whether any regulatory action is required.
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