Sportsbet pledges to lift game on anti-money laundering compliance

Online bookmaker Sportsbet has agreed to improve its management of anti-money laundering and anti-terrorism financing risks in response to an external audit ordered by Australia’s financial crimes regulator.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) says Sportsbet will commit to an ongoing remedial action plan while reporting to the watchdog via an independent auditor.

“The enforceable undertaking is designed to help prevent Sportsbet becoming a place criminals can funnel their illicit funds through,” AUSTRAC chief executive Brendan Thomas said.

“This undertaking will ensure that Sportsbet commits sufficient resources to adequately implement its remediation program promptly, or risk further enforcement action.”

AUSTRAC completed an extensive supervising campaign of Australia’s corporate bookmakers before calling in an external auditor to examine Sportsbet’s compliance with anti-money laundering and counter-terrorism finance laws.

The financial intelligence agency says accepting an enforceable undertaking from the wagering giant is the most appropriate regulatory response, given Sportsbet’s willingness to cooperate and proactively work to meet its obligations.

As part of the undertaking, Sportsbet must also provide reports to AUSTRAC from an auditor who will continually monitor the progress of Sportsbet’s uplift in compliance.

“Corporate bookmakers must have robust systems in place to ensure they comply with their AML/CTF obligations,” Mr Thomas said.

“Sportsbet’s undertaking binds it to a programme of work. This will help ensure Sportsbet manages and mitigates the risks associated with money laundering and terrorism financing.

“We will be monitoring Sportsbet throughout this process to ensure it meets these obligations, and there will be consequences if it does not.”

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“Betting agencies, like all regulated entities, have a significant role to play in combating financial crime.

“This undertaking will ensure that Sportsbet commits sufficient resources to adequately implement its remediation program promptly, or risk further enforcement action,” he said.

A Sportsbet spokesman said the wagering firm had already embarked on measures to tighten procedures around financial compliance and obligations and would continue to work with AUSTRAC

“We take our responsibility to mitigate the risks of financial crime to the Australian financial and payments networks extremely seriously,” he told The Straight.

“We are grateful AUSTRAC has acknowledged our efforts to improve our compliance and that our transformation program to further strengthen our compliance with the AML/CTF Act is well underway.

“We will continue to work closely with AUSTRAC to ensure the right compliance controls are in place.”