The Australian Transaction Reports and Analysis Center (AUSTRAC) has closed its enforceable undertaking with Sportsbet after the online bookmaker completed the required remediation to address serious deficiencies in its anti-money laundering and counter-terrorism financing (AML/CTF) controls.
The undertaking, accepted in May 2024, was offered by Sportsbet after AUSTRAC raised concerns about the company’s compliance with AML/CTF obligations as part of the agency’s review of the corporate bookmaker sector. No financial penalty was disclosed in the source material.
The undertaking required Sportsbet to uplift 5 key areas of its AML/CTF policies and processes. AUSTRAC said independent assurance, completed by an external auditor and provided to the agency, confirmed that Sportsbet had implemented and operationalized all required remediation.
AUSTRAC CEO Brendan Thomas said the outcome reinforces the agency’s expectation that reporting entities take “immediate and sustained action” to meet their legal obligations.
“When AUSTRAC identifies systemic weaknesses in a reporting entity’s AML/CTF controls, we will take enforcement action to ensure those issues are addressed,” Thomas said.
The case also underscores AUSTRAC’s continued scrutiny of the gambling sector. The agency said it continues to monitor gambling businesses closely, noting their exposure to money laundering risks, particularly in online environments where transactions can occur rapidly and with limited face-to-face interaction.
Despite the undertaking’s completion, Thomas said businesses such as Sportsbet, operating in higher-risk sectors, must maintain “robust, risk-based systems” to prevent criminal exploitation.
“Strong AML compliance is the best way to fight financial crime, let’s work together to stamp out criminal abuse of the online gambling sector,” he said.
