Australia’s financial intelligence unit, AUSTRAC, has ordered two casinos to undertake external auditing related to potential compliance failures.
Both the Ville Resort-Casino in Townsville, Queensland and the Mindil Beach Casino Resort in Darwin will go under the spotlight due to AUSTRAC identifying “gaps and deficiencies” in their anti-money laundering and counter terrorism financing (AML/CTF) controls.
“Like all gambling venues, The Ville and Mindil Beach face heightened risk of exploitation by criminals,” warned AUSTRAC CEO, Brendan Thomas.
“My message to boards and CEOs of gambling businesses, including pubs and clubs with gaming machines, is to make sure you comply with Australian money laundering laws and take your responsibility to tackle money laundering seriously; we are watching and we will take further action. Money laundering harms our economy, and it allows criminals to profit from some of the most awful crimes – we need to stamp it out.”
The audit will include determining if the two venues are maintaining AML/CTF protocols that identify and mitigate risks, appropriately monitoring customers and undertaking risk assessments.
Once complete, AUSTRAC will determine if further regulatory action is required based on the outcomes of the audits.
It marks the extended efforts of AUSTRAC to ensure that gambling is free from criminal activity, with a previous AUSTRAC report alleging that Entain’s Australian subsidiaries had failed to intervene in the betting activity of players with significant links to drug trafficking.
In a statement made to iGaming Expert, Entain’s CEO Stella David said that the company is taking the allegations – pertaining to activity between 2015 and 2022 – “extremely seriously” and is committed to fully cooperating with AUSTRAC.
Casinos such as Crown Resorts, Sky City and the Star, as well as online operators Sports bet and bet365 have all faced major action following investigations.
According to Michael Phelan, former CEO of the Australian Criminal Intelligence Commission (ACIC), more than AU$64bn is laundered in Australia each year through various methods.
Alongside taking action against the gambling industry, AUSTRAC has also turned its attention to cryptocurrency, refusing to renew one crypto ATM operator’s registration and placing operating restrictions, including transaction limits of AU$5,000 on other providers.
According to Thomas, AUSTRAC, over several months, has identified “activity that bears the hallmarks of scams, fraud and other illicit activity”.
In particular, it noted that the 60-70 age group was identified as one of the most prolific users of crypto ATMs in Australia – accounting for over 29% of all transactions by value.
Overall, AUSTRAC projected that almost 150,00 transactions occur annually, with approximately $275m being moved using the ATMs. The vast majority of transactions are cash deposits for the purchase of cryptocurrencies.
“It is a huge concern that people in this demographic are overrepresented as customers using cash to purchase cryptocurrency and, as evidence suggests, that a large number of 60-70 year old users are victims of scam activity,” said Thomas.
“The conditions are designed to help protect individuals from scams by deterring criminals from directing them to a crypto ATM, as well as to protect businesses from criminal exploitation. In light of the risks and harms, we consider it is absolutely necessary to ensure the sector meets minimum standards and reduces the criminal misuse of crypto ATMs.”
