Australia’s financial intelligence unit, Austrac, has filed papers in the Federal Court against three Tabcorp companies for “extensive, significant and systemic non-compliance” with Australia’s anti-money laundering and counter-terrorism financing legislation.
In an announcement to its website, Austrac said the action follows a long and comprehensive process of assessment of the Tabcorp Companies.
“AUSTRAC has provided a number of opportunities for these companies to improve their standards and compliance, however they have failed to take the necessary steps.”
“Non-compliance of this nature provides opportunities for organised crime to exploit vulnerabilities and puts at risk the integrity of the Australian financial system.”
Austrac added that it takes strong action towards companies that fail to make the necessary improvements to address serious and systemic non-compliance.
The maximum civil penalty a court may currently order for a contravention is $17 million.
In a filing to the Australian stock exchange Tabcorp said: “Tabcorp takes its compliance obligations extremely seriously. Tabcorp is reviewing the nature of the proceedings and will inform the market of its intended response.”