Casino Operators Under Scrutiny as AUSTRAC Orders Compliance Audits

AUSTRAC has instructed The Ville Resort-Casino in Townsville and Mindil Beach Casino Resort in Darwin to appoint external auditors to assess their AML/CTF compliance.

The actions were taken after AUSTRAC identified potential gaps and deficiencies in AML/CTF controls, risk and oversight.

AUSTRAC CEO, Brendan Thomas, said the far-north casinos operate gaming machines and table games which come with an elevated risk. Without adequate controls and monitoring, they can be used for money laundering.

“Although they may be smaller than entities such as Crown Resorts and The Star, like all gambling venues, The Ville and Mindil Beach face heightened risk of exploitation by criminals,” Mr Thomas said.

“AUSTRAC is serious about driving illicit money out of the gambling industry in Australia and making sure businesses that facilitate gambling have strong money laundering controls.

“This action follows major actions we have taken against other casinos, Crown Resorts, Sky City, and The Star and online bookmakers, Entain, Sports bet and Bet 365.

“My message to boards and CEOs of gambling business, 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 auditors will be tasked with assessing both businesses’ compliance with the AML/CTF Act and AML/CTF Rules and will report back to AUSTRAC.

The scope of the audits will include but is not limited to assessing whether each casino is:

• Maintaining an AML/CTF programme that identifies, mitigates and manages money laundering and terrorism financing (ML/TF) risks.

• Undertaking an appropriate ML/TF risk assessment that considers the risk faced by their business, its customer base and the methods by which they deliver their services.

• Ensuring a framework through which boards and senior management have ongoing oversight of the AML/CTF program.

• Appropriately monitoring customers with a view to identifying, mitigating and managing the money laundering or the terrorism financing risks they face.

“Businesses should not be making it easy for criminals to use them for illicit purposes,” said Mr Thomas.

“If you’re properly managing a compliant AML/CTF program, it is going to deter criminal behaviour and help us drive criminal activity out of your industry.”

The scope of the auditor’s examination of each entity is determined by AUSTRAC and will be at The Ville’s and Mindil Beach’s expense. AUSTRAC will assess whether any further regulatory action is required based on the outcomes of the audits.