As complaints about the behaviour of bookmakers when it comes to blocking customers mount, Racing Victoria has warned those wagering operators who misuse anti-money laundering (AML) or counter-terrorism (CTF) measures to ban successful punters that they will be referred to AUSTRAC.
In a notice issued this month, Racing Victoria said it would act on bookmakers who are unfairly restricting access to accounts, delay payouts or close winning accounts.
It also said it had received complaints that bookmakers are asking for excessive or disproportionate information, including unredacted bank statements and statutory declarations, as a means of filtering out punters.
“We have observed instances when a bookmaker has elected to make the most onerous or sensitive form of information request from a customer, where a request for less onerous or sensitive information could have been reasonably expected to sufficiently address the concerns held by the bookmaker,” the statement said.
AML or CTF measures have become a necessary part of account verification for bookmakers, something which Racing Victoria acknowledged but said it had been made aware those measures were being misused.
“Racing Victoria is concerned that some customers perceive the use AML/CTF policies as a pretext to deny customer funds, close accounts, or impose unreasonable barriers to account access and withdrawals,” it read.
“This activity may also result in bookmakers improperly relying on the AML/CTF exemption to the minimum betting obligation in Rule 14.13 of the Club Bookmakers’ Licence Rules (Licence Rules).”
Under Racing Victoria’s licensing rules, bookmakers must operate under fair terms and conditions, act in a reasonable manner when it comes to the timing of compliance measures and deal professionally and respectfully with customers.
“Where Racing Victoria suspects that a bookmaker is using AML/CTF policies to unreasonably withhold services from customers, including denying access to funds 1 or closing account accounts, Racing Victoria may refer the bookmaker to AUSTRAC,” the statement said.
AUSTRAC could prosecute a bookmaker for any breach of the federal AML/CTF Act, with section 35J specifically referring to “obtaining access to verification information by false pretences—offence.”
RV said it has already been in discussions with AUSTRAC.
“Racing Victoria expects all licensed bookmakers to review their current practices to ensure they align with the expectations outlined in this notice,” it said.
“Adopting a transparent and fair approach in ECDD processes is crucial, ensuring that any actions taken are genuinely related to AML/CTF concerns.
“(We are) concerned that some customers perceive the use AML/CTF policies as a pretext to deny customer funds, close accounts, or impose unreasonable barriers to account access and withdrawals” - Racing Victoria
“Racing Victoria has recently been engaged in consultations with AUSTRAC. Where Racing Victoria suspects a bookmaker is misusing AML/CTF processes for other purposes (for example, obtaining access to verification information by false pretences, in contravention of section 35J of the AML/CTF Act), it will refer this to AUSTRAC.
“Should AUSTRAC find that a bookmaker has inappropriately justified their actions under the guise of AML/CTF concerns, the bookmaker may face significant penalties or be subject to other regulatory actions.”
Warwick Barr
The notice was issued to all 140 online and on-course bookmakers which are regulated by Racing Victoria.
