Australian gambling operator Tabcorp has disclosed that it is the subject of an enforcement investigation by AUSTRAC, the country's anti-money laundering and counter-terrorism financing regulator.
In a notice issued on 7 May, Tabcorp confirmed it had received a letter from AUSTRAC outlining serious concerns about its ability to effectively identify, mitigate and manage money laundering and terrorism financing risks.
The investigation will initially focus on whether Tabcorp has maintained a compliant AML/CTF programme, adhered to that programme in practice and appropriately monitored its customers.
AUSTRAC has indicated that the investigation remains at an early stage and that all outcomes remain possible, including the possibility that no further enforcement action is taken.
Commenting on the matter, Tabcorp Chairman Brett Chenoweth stated: “Tabcorp takes its anti-money laundering and counter-terrorism financing obligations very seriously. The Board and Executive are fully committed to collaborating with AUSTRAC in the continuing uplift in Tabcorp’s ML/TF risk maturity.”
Tabcorp Managing Director and CEO Gillon McLachlan added: “I am committed to leading a compliant and safe company that understands its risk obligations. Uplifting our risk capability has been an ongoing part of the Company’s transformation and we will work constructively with AUSTRAC through this process.”
The development arrives in the context of heightened regulatory scrutiny across Australia's gambling sector. AUSTRAC CEO Brendan Thomas warned at the Regulating the Game conference in March that recurring patterns of AML compliance failures had been identified across gambling operators, describing systemic weaknesses that had been exploited repeatedly.
AUSTRAC updated its regulatory scope guidance in April, reiterating that gambling businesses carry full AML/CTF obligations – and the regulator has also recently outlined how it will use new compulsory examination powers introduced under 2024 legislative reforms.
AUSTRAC has stated that gambling businesses remain a key frontline sector in Australia’s efforts to combat money laundering and financial crime
