The Australian government agency, Austrac, tasked with combating money laundering, has mandated audits of Bet365 and SportsBet, both owned by Flutter. This action is intended to ascertain whether the two businesses have breached anti-money laundering regulations.
Austrac’s decision stems from a comprehensive regulatory initiative targeting entities within the betting brokerage sector. This follows the recent commencement of an investigation into Entain.
Auditors will evaluate the two companies’ adherence to four key aspects of anti-money laundering legislation.
Firstly, auditors will assess whether the two companies have established and maintained risk-based systems and controls for anti-money laundering and counter-terrorism financing programs. These programs aim to effectively identify, mitigate, and manage money laundering and terrorism financing risks.
Secondly, auditors will examine whether the two companies have conducted appropriate anti-money laundering risk assessments.
Finally, auditors will review whether the SportsBet and Bet365 boards have maintained continuous oversight of anti-money laundering endeavors.
In the end, authorities will examine if these companies adequately oversee their clientele to spot, lessen, and control the dangers they might reasonably face. This includes the possibility that offering specific services could involve or aid in money laundering or terrorist funding.
Inspectors must present their conclusions within 180 days, which might result in further regulatory action.
The two operators will be obligated to pay for the auditor’s services.
The agency stated that the audit results will assist Sportsbet and Bet365 in adhering to anti-money laundering and counter-terrorism financing requirements. It will also inform Austrac if additional regulatory action is necessary.
Industry Caution
Austrac CEO Nicole Rose highlighted that the action against the two major operators should act as a warning to the entire industry. When announcing the investigation into Entain, the agency also cautioned that other gambling businesses might face action.
“Sportsbet and Bet365 are among the biggest operators in the corporate gambling sector. Austrac is sending a message to the entire industry to improve their standards.
“Ultimately, enforcing non-compliance is about safeguarding the public. Money laundering fuels organized crime and all the harm it brings. We need businesses on the front lines to fully comply with anti-money laundering/counter-terrorism financing laws – to comprehend and mitigate their risks and report suspected criminal activity.”
Australias financial intelligence agency, Austrac, will take a hard line against any dubious activity to shield businesses from exploitation and ensure the safety of Australians.
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