Money laundering is not a victimless crime – it has real world impacts. 

Criminals seek to take advantage of businesses to clean their dirty money obtained by illegal activities like trafficking drugs or humans. This money is often reinvested in further criminal enterprises that amplify these harms.

Our role as Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regulator is to ensure that regulated businesses comply with their obligations to have systems and controls in place to manage their risks and protect them and the community from criminal abuse.

We recently took enforcement actions against two major companies, Sportsbet Pty Ltd (Sportsbet) and SkyCity Adelaide Pty Ltd (SkyCity), for failing to meet their obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). These actions highlight our commitment to safeguarding Australia's financial system from exploitation.

On 30 May 2024, AUSTRAC accepted an enforceable undertaking from online betting company Sportsbet to uplift its compliance with Australia’s AML/CTF laws. This enforceable undertaking represents a legally binding agreement, where Sportsbet has committed to an ongoing remedial action plan to improve its AML/CTF program, which AUSTRAC will monitor to ensure it is undertaken within agreed timeframes. 

This enforceable undertaking is designed to help prevent Sportsbet becoming a place criminals can funnel their illicit funds through and reflects AUSTRAC's approach to ensuring that businesses within the online gambling sector meet their AML/CTF obligations. Details of the enforceable undertaking can be found on the AUSTRAC website.

In another significant development, on 7 June 2024, SkyCity was ordered by the Federal Court of Australia to pay a $67 million penalty after AUSTRAC launched civil penalty proceedings against it for breaches of the AML/CTF Act. The court found that SkyCity’s AML/CTF Programs failed to meet the requirements of the AML/CTF Act, and that it did not carry out appropriate ongoing customer due diligence. The casino’s failure to comply allowed high-risk customers to move millions of dollars through the casino, in ways that made the source and ownership of the funds unclear.

The $67 million penalty serves as an important reminder to casinos to take their AML/CTF obligations seriously and be vigilant to money laundering and terrorism financing risks. Details of the federal court ruling can be found on the AUSTRAC website.

What you need to do

These actions against Sportsbet and SkyCity highlight the importance of AML/CTF compliance across industries and serve as a reminder that businesses must remain vigilant and proactive in their efforts to combat money laundering and terrorism financing. 

Some key actions you can take to ensure you do your part include:

• ensure you are up to date with your AML/CTF obligations 
• understand your reporting obligations and report suspicious activity to us
• read new resources and guidance relevant to your industry.

To stay up to date with AUSTRAC’s latest efforts to combat financial crime, visit our news and media page.