AUSTRAC looks into bet365 and Sportsbet

Australia’s financial intelligence unit, AUSTRAC, has appointed external auditors to look into Sportsbet Pty Ltd and Hillside Pty Limited trading as Sportsbet and Bet365 respectively. The probe will happen under the existing Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CFT Act), the regulator posted on its official website, and specifically under section 162.

Bet365 and Sportsbet are two of the most respected local sportsbooks in the country, and they will now need to demonstrate their compliance with the AML/CFT Act to the appointed auditors. The investigation comes after a similar probe into another respected company in the country, Entain, which is a heavyweight in the delivery of sports betting products and has been so for many years now.

AUSTRAC has vowed to ensure that it leads an extensive supervisory campaign into various entities in the country to ensure full compliance with AML/CFT mandates. Presently, the auditors will have 180 days to examine and assess Sportsbet and bet365’s compliance along a number of key priorities.

Essentially, AUSTRAC wants to make sure that four specific criteria are met. Those include ensuring that both operators have a framework which allows boards and senior management to control the companies’ Part A Programs. Additionally, both companies should have a robust AML/CTF program in place and have an appropriate ML/TF Risk Assessment mechanism.

Not least, operators must be sufficiently monitoring and identifying customers in order to assess whether there is an increased risk of money laundering or financing of terrorism, the regulator posted on its website. All investigations will be paid for by bet365 and Sportsbet. By the end of the 180-day assessment period, AUSTRAC will be able to confirm whether the pair of bookmakers have been complying with the country’s regulatory standards.

In a public statement by the regulator, the watchdog explained that the probes were necessitated not so much by particular deficiencies discovering in the operations of both companies, but rather as an ongoing effort to ensure that Australians are protecting. It’s also about driving home the message that companies of Sportsbet and bet365’s caliber have inherent obligations.

"We need businesses at the front line to fully comply with the AML/CTF Act – to understand and mitigate their risks and report suspected crimes," Austrac noted in a public message. Should there be breaches, AUSTRAC said, there will be the appropriate action taken as well. These investigations are part of a much broader attempt to ensure that every aspect of the gambling industry in Australia is on par with regulation.

The country is undergoing rapid changes following the investigations into Crown Resorts and Star Entertainment Group. There have been ongoing efforts to introduce facial recognition and cashless gaming cards, among other, such as new gambling ads messaging or even banning gambling ads altogether.

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