“Systemic non-compliance”
Tabcorp, the Australian gaming giant, has agreed to pay US$45 million in penalties to settle a money laundering case lodged against three of its companies by the Australian Transaction Reports and Analysis Centre.
In July 2015, Austrac charged Tabcorp with “extensive, significant and systemic non-compliance” with Australia’s anti-money laundering and counter-terrorism financing laws.
According to the Australian, Austrac conducted a lengthy probe of Tabcorp companies before filing the charges. Under the agreement, Tabcorp will pay AU$45 million penalty and also pick up Austrac’s legal fees.
The wagering operator has also admitted non-compliance with its anti-money laundering and counter-terrorism financing rules.
“Tabcorp acknowledges that there were a number of deficiencies in its former AML/CTF program, which resulted in a serious contravention of the AML/CTF legislation,” the company said in a release. “It also acknowledges that it did not comply with certain other obligations under the AML/CTF legislation, while that program was in place.
“These deficiencies were not the result of a deliberate intention to breach the AML/CTF legislation,” it added.
The Austrac case caused net profit in the first half of 2017 to drop 28.1 percent year-on-year to AU$58.9 million.
The company says since 2015 it has “made a significant enhancement to enhance its AML/CTF compliance”, including a new joint AML/CTF program, increased training and the appointment of a chief risk officer.
“Tabcorp is firmly committed to being the industry leader in regulatory compliance across all of our operations. We are pleased to have reached an agreement with Austrac on this matter and will continue to work co-operatively with Austrac going forward,” said Tabcorp Managing Director and CEO, David Attenborough.
