AUSTRAC Orders Two Casinos to Appoint External AML/CTF Auditors

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has asked two casinos to appoint external auditors to address potential anti-money laundering (AML) and counter-terrorist financing (CTF) shortcomings.

AUSTRAC Identified Potential Deficiencies

In its official announcement, the AUSTRAC said that it has instructed The Ville Resort-Casino in Townsville and Mindil Beach Casino Resort in Darwin to appoint external auditors in the wake of findings, which suggested potential AML and CTF deficiencies.

The auditors will be tasked with assessing the two casinos’ AML and CTF controls, risk and oversight to confirm whether the potential gaps identified by the AUSTRAC exist and report back to the analysis center.

The audits will check whether the two gambling properties are maintaining an active AML/CTF program that identifies and addresses potential risks. In addition to that, they will see whether the casinos are doing sufficient work to assess the risk faced by their businesses and whether the leadership maintains sufficient oversight of the AML/CTF program.

The audits will also assess the casinos’ customer monitoring efforts.

Financial Crime Hurts Australia

Although The Ville Resort-Casino and Mindil Beach Casino Resort are smaller casinos compared to those operated by Crown Resorts and The Star Entertainment Group, the AUSTRAC emphasized that their businesses could still be exploited for illicit purposes.

The center’s chief executive officer, Brendan Thomas, pointed out that the far-north casinos operate gaming machines and table games which come with an elevated risk and could therefore be used for money laundering.

Thomas added that the AUSTRAC is very serious about eliminating financial crime from Australia’s gambling industry and ensuring stricter controls. He emphasized that money laundering hurts the Australian economy and therefore needs to be stamped out.

My message to boards and CEOs of gambling business, including pubs and clubs with gaming machines, is to make sure you comply with Australian money laundering laws and take your responsibility to tackle money laundering seriously; we are watching and we will take further action.

Brendan Thomas, CEO, AUSTRAC

AUSTRAC Will Determine Whether Further Action Is Needed

The AUSTRAC’s instructions to The Ville Resort-Casino and Mindil Beach Casino Resort come in the wake of major actions against some of Australia’s biggest operators, such as Crown Resorts, Sky City, and The Star. Online bookmakers, Entain, Sports bet and Bet 365 were likewise scrutinized.

The announcement concluded that the scope of the auditors’ examinations will be determined by the AUSTRAC and will be carried out at the two casinos’ expense. The AUSTRAC added that it will determine whether further regulatory action is needed after examining the results.

A month ago, the AUSTRAC asked inactive digital currency exchange (DCE) firms to withdraw their registrations or risk having them canceled. This “Use it or Lose it” campaign sought to prevent inactive businesses from being exploited for illicit purposes.