AUSTRAC, Australia’s financial intelligence agency, has instructed two casinos to undergo external audits due to potential anti-money laundering (AML) and counter-terrorist financing (CTF) issues.
Key Takeaways:
- AUSTRAC orders external AML/CTF audits for The Ville and Mindil Beach casinos
- Audits aim to assess risk management and oversight in these gambling venues
- Move follows recent regulatory actions against major Australian casino operators
AUSTRAC Targets Northern Casino Operations
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has set its sights on two northern casinos, demanding they appoint external auditors to examine their AML and CTF practices. The Ville Resort-Casino in Townsville and Mindil Beach Casino Resort in Darwin are now under scrutiny following AUSTRAC’s identification of potential compliance gaps.
These audits will focus on evaluating the casinos’ risk assessment procedures, AML/CTF program effectiveness, and leadership oversight. Customer monitoring efforts will also be under the microscope as AUSTRAC seeks to ensure these venues are not being exploited for illicit financial activities.
Smaller Venues, Significant Risks
While The Ville and Mindil Beach may not match the scale of operations seen at Crown Resorts or The Star Entertainment Group, AUSTRAC CEO Brendan Thomas emphasized that their services still pose considerable risks. Thomas stated, ‘These casinos operate gaming machines and table games which come with an elevated risk and could therefore be used for money laundering.’
The regulatory body’s focus on these smaller operators underscores its commitment to rooting out financial crime across all levels of Australia’s gambling industry. This move aligns with AUSTRAC’s recent actions against major casino groups and online bookmakers, including Crown Resorts, SkyCity, The Star, Entain, Sportsbet, and Bet365.
Implications for the Australian Gambling Landscape
AUSTRAC’s directive to The Ville and Mindil Beach casinos reflects a broader trend of intensified regulatory oversight in the Australian gambling sector. The financial intelligence agency has made it clear that it views money laundering as a significant threat to the Australian economy and is determined to implement stricter controls.
The scope of these audits will be determined by AUSTRAC, with the casinos bearing the associated costs. Following the examination of the audit results, AUSTRAC will decide whether further regulatory action is necessary.
This development comes on the heels of AUSTRAC’s recent ‘Use it or Lose it’ campaign targeting inactive digital currency exchanges, further demonstrating the agency’s proactive approach to preventing financial crime across various sectors.
As the gambling industry in Australia continues to face increased scrutiny, operators of all sizes must prioritize robust AML and CTF compliance measures to maintain their licenses and protect the integrity of their operations.
