Sportsbet to comply with AUSTRAC AML and CTF standards

Sportsbet, a Flutter Entertainment-owned Australian online sports betting operator, has confirmed in a statement that it will comply with requests from the Australian Transaction Reports and Analysis Center (AUSTRAC), and meet requirements for managing money laundering and terrorism financing.

Sportsbet and AUSTRAC agree on AML/CTF remedial plan

The confirmation also came from AUSTRAC’s corner, with the financial crimes regulator’s CEO, Brendan Thomas, saying that Sportsbet had served as a place where underhand activities, including the funnelling of illicit funds, had previously taken place.

AUSTRAC has a range of tools at its disposal to ensure that companies that are currently under monitoring from the regulator are compliant. Some of those include:

• Issuing infringement notices
• Issuing remedial directions
• Seeking injunctions
• Civil penalty orders
• Enforceable undertakings

In the case of Sportsbet, the regulator had accepted an Enforceable Undertaking, which explains how the corporate bookmaker would be committed to an ongoing remedial action to meet failings and shortcomings in certain areas.

"The enforceable undertaking is designed to help prevent Sportsbet becoming a place criminals can funnel their illicit funds through," Thomas’ exact statement read.

Thomas explained that bookmakers of Sportsbet’s stature must have robust systems in place that allow them to meet their AML and counter-terrorism financing obligations in full and counteract in those instances where they suspect foul play.

However, Thomas and AUSTRAC used the occasion to congratulate Sportsbet on showing a willingness and real effort to remedy the situation in areas that the regulator had found to be deficient.

"Sportsbet’s undertaking binds it to a programme of work. This will help ensure Sportsbet manages and mitigates the risks associated with money laundering and terrorism financing," AUSTRAC added in the official statement released on its website.

In the meantime, Sportsbet will also have to ensure that it is ticking regulatory checkboxes, as AUSTRAC will be monitoring the operator’s activities carefully.

Australian betting companies on the hook for AML/CTF failings

The watchdog similarly confirmed that betting companies have an obligation to actively combat financial crime, which may have proliferated over the past several years, and not least targeted gambling platforms in the first place.

AUSTRAC is fairly upbeat about what the monitoring would bring around, however, as the watchdog believes that Sportsbet has the necessary resources and nous to ensure that it complies fully with tighter AML and CTF measures.

All of this comes after AUSTRAC got itself involved with Sportsbet back in 2022, with the regulator ordering an external audit of the company.

Sportsbet has confirmed that it has welcomed the regulator’s most recent determination in the case and said that the company takes full responsibility for mitigating the risks of financial crime and protecting Australian financial and payments networks.

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