AUSTRAC has directed Bankstown District Sports Club Ltd to appoint an external auditor amid concerns that its anti-money laundering controls may not be sufficiently robust. The regulator said the potential weaknesses could allow organised crime to exploit poker machines and gambling facilities.
The order, issued under section 162 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, requires an independent review of the club’s compliance with its AML and counter-terrorism financing obligations. The audit will examine whether the club maintains an effective, risk-based programme to identify and manage money laundering risks, has properly assessed risks associated with its customers and services, and operates adequate systems to monitor suspicious activity.
AUSTRAC Acting Chief Executive Katie Miller said clubs and pubs operate on the frontline of Australia’s fight against financial crime, particularly in venues handling large volumes of cash.
“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. She noted that offenders may insert significant sums of cash into machines, engage in minimal play and then cash out, creating the appearance of legitimate funds.
Ms Miller added that where AUSTRAC identifies signs of systemic weakness, it will intervene to protect the integrity of the financial system and the broader community.
The action forms part of AUSTRAC’s wider oversight of the gambling sector. Recent measures include civil penalty proceedings involving Mount Pritchard District and Community Club, an enforceable undertaking with online wagering provider Sportsbet, and an ongoing enforcement investigation into Tabcorp.
AUSTRAC said the audit findings will assist the club in strengthening its compliance framework and will help determine whether further regulatory action is required.
The independent audit will be conducted at the club’s expense, with the scope set by AUSTRAC
