In 2022, the New South Wales (NSW) Independent Liquor & Gaming Authority (ILGA) and NSW Crime Commission will undertake a probe of money laundering in the Australian state’s pubs and clubs.
The inquiry follows recent media allegations that more than AU$1 billion (US$724 million) is laundered each year through Australia’s pokie machines. According to Inside Asian Gaming, the allegations involve 140 pubs and clubs in Sydney alone.
“Working with the NSW Independent Liquor & Gaming Authority and the Australian Criminal Intelligence Commission, we’ve established that last year, AU$85 billion was gambled in poker machines in pubs and clubs in NSW,” said state Crime Commissioner Michael Barnes. “We simply don’t know how much of that was the proceeds of crime being laundered by or on behalf of criminal syndicates, but when so much money is involved it is reasonable to suspect some level of criminal activity.”
Barnes added that the probe will begin with no “preconceptions about the extent of that criminal activity. We know pubs and clubs deliver valuable community services and are assured ClubsNSW, the peak body for the industry, is committed to stamping out illegality.”
ClubsNSW, which represents the state’s clubs, has called for new anti-money-laundering measures, including life bans for people when there are “reasonable grounds to suspect they are attempting to exploit a community club to launder illicit funds.”
The probe was kicked off by reports in The Age, the Sydney Morning Herald and 60 Minutes, the same media outlets that uncovered evidence of money laundering and compliance breaches at Crown Resorts and Star Entertainment Group.
“At present, clubs are prevented by federal law from banning members for acting suspiciously in our venues as it would constitute a ‘tipping-off’ offense,” said ClubsNSW CEO Josh Landis. “We’re also unable to utilize NSW Police or Liquor and Gaming NSW alerts, which would allow us to identify potential money launderers operating in our venues.
“We want to work with police and regulators to identify criminals so that we can ban them from our venues for life.”
