AUSTRAC has finalised an enforceable undertaking with Sportsbet after determining that the operator has addressed deficiencies in its anti-money laundering and counter-terrorism financing (AML/CTF) framework.
The undertaking was accepted in May 2024 after AUSTRAC raised concerns about Sportsbet’s approach to risk assessments, customer monitoring and suspicious matter reporting. The issues were identified during the regulator’s review of Australia’s corporate bookmaker sector.
Under the undertaking, Sportsbet was required to improve five areas of its AML/CTF policies, processes and governance.
AUSTRAC said independent assurance work, completed by an external auditor and submitted to the regulator, confirmed that the required remediation had been implemented and operationalised.
AUSTRAC CEO Brendan Thomas said the outcome demonstrated the regulator’s expectation that reporting entities take prompt and sustained action when systemic weaknesses are identified.
Thomas said Sportsbet had undertaken significant work to strengthen its systems, controls and governance, but added that completion of the undertaking did not reduce the regulator’s expectations for businesses operating in higher-risk sectors.
The regulator noted that the gambling sector remains exposed to money laundering risks, particularly in online environments where transactions can be completed quickly and with limited face-to-face interaction.
AUSTRAC also highlighted identity and payment fraud as continuing threats for online gambling operators.
The development follows broader regulatory activity involving Australian gambling businesses, with AUSTRAC recently ordering an external audit of Bankstown District Sports Club over potential AML control weaknesses, and Tabcorp also remaining subject to an enforcement investigation.
An enforceable undertaking is a legally binding commitment offered to a regulator, typically requiring an organisation to take specified corrective action without necessarily proceeding to court action
