The Australian Transaction Reports and Analysis Centre (AUSTRAC), a regulatory body responsible for financial crime, vowed to continue its intense oversight of the gaming sector. During a recent keynote address, its chief executive officer announced that penalties await any violators.
AUSTRAC Says Violators Shouldn’t Expect Leniency
NEXT.io reported that CEO Brendan Thomas’ address was delivered at the Regulating the Game conference in Sydney. According to the report, the executive used the opportunity to comment on the topic of money laundering and similar financial crimes.
The speech came as the AUSTRAC looked to wrap up its regulatory action against the embattled casino and hospitality giant Star Entertainment Group. In addition, Australia has also been investigating Entain’s regulatory shortcomings.
Although the AUSTRAC prepares to end the aforementioned investigations, Thomas emphasized that this doesn’t mean that the regulator’s work is over. He warned that the authority’s patience has its limits and that businesses should understand that they risk fines, should they fail in their obligations.
If you expect AUSTRAC to educate, educate, educate and then take action years later, you’re mistaken. If you think your business is too small to take responsibility for regulatory compliance, you’re also mistaken. Your services in the gambling industry have been subject to a regulatory regime for many years now and it is your responsibility to comply.
Brendan Thomas, CEO, AUSTRAC
The Risk Landscape Is Changing
Thomas added that recent tech advancements have made the financial sector much more complex to navigate. The advent of the digital age has led to shifts in the risk landscape, necessitating certain developments.
Thomas called for better customer verification processes and asked the gaming sector to be diligent in its risk assessments. According to him, this would align them with the AML and CTF Amendment Bill of 2024.
The bill revisited certain aspects of the previous act, adding a host of new business sectors to AUSTRAC’s scope. The new act also changed the compliance requirements for businesses, promoting a more involved approach.
Thomas elaborated that the act sought to champion proper discussions about risk rather than pure compliance. He argued that such discussions can make many things clearer, allowing industries to focus on what matters instead of “ticking a bunch of compliance boxes.”
The AUSTRAC itself is also undergoing changes as it seeks to establish meaningful relationships with the industries it regulates. Thomas added that the body is pursuing enhanced transparency around risk.
The Gambling Industry Should Help the AUSTRAC Tackle Crime
Thomas concluded that there is “no question” about where illicit funds come from and how they are impacting people in Australia. He noted that criminal enterprises use their profits to scale up their operations, effectively reinvesting the money they get into more crime.
The AUSTRAC CEO highlighted drug trade, fraud, sexual exploitation of minors, and human trafficking as the worst offenders Australia should take care of.
Because of that, Thomas appealed to the gambling industry to join the war on such fraud, saying: “(…) So if you are in the gambling industry you have a pretty big obligation to help us combat these problems.”
