Austrac calls Tabcorp on money laundering

Austrac has filed papers in the Federal Court against three Tabcorp group companies for what it has called "extensive, significant and systemic non-compliance" with Australia's anti-money laundering and counter-terrorism financing legislation.

The application and statement of claim is the starting point for civil penalty proceedings against Tabcorp subsidiaries Tab Limited, Tabcorp Holdings Limited and Tabcorp Wagering (Vic) Pty Limited.

This action follows what the newly-appointed Austrac CEO Paul Jevtovic called "a long and comprehensive process of assessment" of the Tabcorp companies' anti-money laundering and counter-terrorism financing compliance.

"Austrac has provided a number of opportunities for these companies to improve their standards and compliance, however they have failed to take the necessary steps," he said via a media announcement.

"Non-compliance of this nature provides opportunities for organised crime to exploit vulnerabilities and puts at risk the integrity of the Australian financial system."

The maximum civil penalty a court may currently order for contraventions such as those Tabcorp is alleged to have committed is A$17 million.

The action is the first against an Australian company in the gambling and wagering sector since Austrac levied a $10,200 fine on Australian online bookmaker ClassicBet for a breach of Australia's AML/CTF laws.

For its part, Tabcorp stuck with a boilerplate response: "Tabcorp takes its compliance obligations extremely seriously. Tabcorp is reviewing the nature of the proceedings and will inform the market of its intended response."