Gambling operator Tabcorp has agreed to pay a record $45 million fine over its failure to tell the government's counter-terrorism financing regulator that more than 30 TAB accounts were opened under false names and used to filter fraudulent credit card funds for organised crime figures.
The Australian Transaction Reports and Analysis Centre (AUSTRAC), a government body that seeks to keep "dirty money" out of Australia's financial system, alleged more than 100 separate breaches of the law by Tabcorp, including an incident involving a betting plunge on an NRL Cowboys versus Bulldogs game in 2010 that caused bookmakers to suspend betting.
The regulator launched civil penalty proceedings in the Federal Court against Tabcorp Holdings and Tabcorp's NSW and Victorian wagering businesses alleging extensive, significant and systematic non-compliance by Tabcorp and last year extended their case to raise fresh claims against the wagering giant.
Serious contraventions
As part of the settlement deal announced on Thursday, which still needs to be approved by the court, Tabcorp said it would make a number of admissions of non-compliance which had resulted in the "serious contravention" of the law.
"Tabcorp is firmly committed to being the industry leader in regulatory compliance across all of our operations," Tabcorp managing director David Attenborough said. "We are pleased to have reached an agreement with AUSTRAC on this matter and we will continue to work co-operatively with AUSTRAC going forward."
The case will help to clear the decks for the Melbourne-based Tabcorp which agreed last October to combine with Tatts Group to create a $11.3 billion gaming giant after Melbourne-based Tabcorp agreed to pay a 20 per cent premium for Tatts shares.
As part of the settlement, Tabcorp has agreed to "a substantial investment" in its anti-money laundering and counter terrorism team, the establishment of a financial crime risk team, the introduction of an automated transaction monitoring capabilities and comprehensive training for 29,000 staff across Tabcorp's offices and retail outlets.
The gambling industry, worth more than $25 billion in Australia, has long been considered a high-risk sector for money laundering because criminals can exploit the high cash turnover and large volume of transactions to camouflage illegitimate transactions.
