AUSTRAC turns its focus to clubs and pokies
A western Sydney club has been the latest gambling venue to come under notice from AUSTRAC.
Just two weeks after the financial crimes regulator begin its investigation of Tabcorp, it has ordered Bankstown District Sports Club Ltd to appoint an independent auditor amid concerns its anti‑money laundering controls may be vulnerable to exploitation by organised crime through poker machines.
Acting CEO Katie Miller said clubs and pubs are on the frontline of the country’s fight against money laundering, warning weak controls can allow illicit funds to be disguised as legitimate gambling winnings.
“Poker machines can be exploited by criminals to turn cash into apparently legitimate returns, particularly where oversight is insufficient or red flags are missed,” Miller said.
The order, issued under section 162 of the Anti‑Money Laundering and Counter‑Terrorism Financing Act, requires a third‑party review of the club’s compliance systems.
AUSTRAC warned it will intervene where systemic weaknesses are identified to safeguard the integrity of Australia’s financial system.
“This action forms part of AUSTRAC’s ongoing regulation of the gambling sector, including civil penalty proceedings involving Mount Pritchard District and Community Club (Mounties), an enforceable undertaking with online wagering provider Sportsbet, and an enforcement investigation involving Tabcorp,” it said.
The compliance crackdown will put racing clubs who operate gaming machines under notice to make sure their venues are meeting AML and CTF requirements.
