Tabcorp chooses ex-AUSTRAC chief to lead its investigation response

Tabcorp has sought to shore up its response to AUSTRAC’s investigation by appointing a former chief executive of the financial crimes regulator to a senior executive role.

Paul Jevtovic was boss of AUSTRAC from 2014 until 2017, a time when Tabcorp was fined a then-record $45 million for non-compliance with the Anti-Money Laundering (AML) and Counter-Terrorism Financing Act 2006.

But as Tabcorp faces another major investigation into its compliance, it has called on Jevtovic to fill the newly created chief financial crime officer role. 

The experienced executive, who worked in a similar role for the National Australia Bank, has been working as a consultant already for Tabcorp and will lead the response to the AUSTRAC investigation as well as Tabcorp’s financial crime, investigations, fraud and scam function.

“Paul brings exceptional executive experience, having served as chief executive officer of AUSTRAC and, more recently, chief of financial crime risk at NAB,” Tabcorp chief executive Gillon McLachlan said.

“His track record overseeing AML programs globally and across some of Australia’s largest organisations will be invaluable as we strengthen our capabilities.

“Paul will lead our AUSTRAC response, chair the oversight committee, and enhance our financial crime framework, including investigations, fraud, and scams.”

When Jevtovic was AUSTRAC’s chief executive in 2017, he condemned Tabcorp’s corporate culture, describing it as “indifferent to meaningful AML/CTF compliance and risk mitigation until we intervened”.

Shortly before leaving his role in 2017, he said he was heartened by Tabcorp’s response to the investigation.

While much has changed in the intervening nine years, he now finds himself coordinating Tabcorp’s response.

Tabcorp also confirmed that experienced wagering compliance executive Joel Williams has been appointed chief risk officer (CRO).

Williams returned to Tabcorp in 2023, in the role of GM of Regulation, but had been acting in the CRO role since Paul O’Rourke resigned due to ill health in February.

The changes mark a major step up in Tabcorp’s compliance capability, as it faces a long-term investigation into possible failures in its AML and CTF programs.

Tabcorp informed the share market two weeks ago that AUSTRAC had commenced an investigation, precipitating a major collapse in the company’s share price.

It fell from $1.15 to 68 cents, a drop of nearly 40 per cent, taking close to $1 billion off its market capitalisation.

AUSTRAC’s intervention looms as the biggest challenge for McLachlan since he took charge in August 2024.