AUSTRAC ORDERS INDEPENDENT AUDIT OF BANKSTOWN SPORTS
Australia’s financial crimes regulator, AUSTRAC, has ordered Bankstown District Sports Club to appoint an external auditor amid concerns the club’s anti-money laundering and counter-terrorism financing controls may not be sufficiently robust to prevent criminal exploitation through poker machines and gaming operations.
The directive, issued under section 162 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, requires an independent review of the club’s AML/CTF compliance framework. The audit will examine whether the club has implemented an effective risk-based AML/CTF program, conducted appropriate assessments of customer and operational risks, and established adequate systems to identify suspicious behaviour linked to money laundering or terrorism financing.
Katie Miller said pubs and clubs remain on the frontline of Australia’s efforts to combat financial crime, particularly in venues with significant cash turnover and poker machine activity.
“Poker machines can be exploited by criminals to turn cash into apparently legitimate winnings, especially where controls are weak or warning signs are missed,” Ms Miller said.
“In gambling venues, criminals may repeatedly insert cash into poker machines, engage in little or no genuine play, and then cash out – turning illicit cash into funds that appear legitimate.”
Ms Miller said the regulator expects clubs and hotels to maintain strong compliance frameworks capable of detecting and reporting suspicious activity.
“That’s why it’s critical clubs and pubs understand their risks, have strong controls in place and report suspicious activity,” she said.
“Money laundering fuels organised crime and all the harm that comes with it. Where we see signs of systemic weaknesses, AUSTRAC will intervene to protect the community and the integrity of Australia’s financial system.”
The audit will be conducted at the club’s expense, with the scope determined directly by AUSTRAC. The regulator said the findings will help strengthen the club’s compliance systems while also informing whether any further regulatory action may be necessary.
The action forms part of broader regulatory scrutiny across the hospitality and wagering sectors. AUSTRAC is currently pursuing civil penalty proceedings involving Mount Pritchard District and Community Club, has secured an enforceable undertaking with Sportsbet, and continues an enforcement investigation into Tabcorp.
“Clubs and pubs play an important role in their communities, but they also operate in a high-risk environment,” Ms Miller said.
“Our job is to lift standards across the sector so criminal groups can’t use gambling venues to move or disguise illicit funds.”
Read more >>> AUSTRAC steps in on suspected AML weaknesses at NSW club | AUSTRAC
