AUSTRAC closes Sportsbet enforceable undertaking after AML/CTF remediation completed

AUSTRAC has formally closed its enforceable undertaking with Sportsbet after confirming the company completed all required remediation work to fix significant weaknesses in its anti-money laundering and counter-terrorism financing (AML/CTF) systems.

The enforceable undertaking, which was accepted in May 2024, followed concerns raised by AUSTRAC during a review of the corporate bookmaker industry. Those concerns related to compliance gaps in Sportsbet’s AML/CTF obligations. No financial penalty was reported in the available material. Under the terms of the undertaking, Sportsbet was required to strengthen and uplift five specific areas of its AML/CTF policies and operational processes.

AUSTRAC stated that the remediation has now been completed, with independent assurance provided by an external auditor confirming that Sportsbet had implemented and operationalised all required improvements. This verification formed the basis for AUSTRAC’s decision to close the undertaking.

AUSTRAC CEO Brendan Thomas emphasised that the regulator expects firms to act quickly and decisively when issues are identified. He said: “When AUSTRAC identifies systemic weaknesses in a reporting entity’s AML/CTF controls, we will take enforcement action to ensure those issues are addressed,” Thomas said.

He also reiterated the broader risk profile of the gambling sector, particularly online operators, noting continued regulatory attention due to money laundering vulnerabilities in fast, remote transaction environments. “Strong AML compliance is the best way to fight financial crime, let’s work together to stamp out criminal abuse of the online gambling sector,” he said.

Despite closing the undertaking, AUSTRAC stressed that businesses like Sportsbet, operating in higher-risk industries, must continue maintaining strong, risk-based compliance systems to prevent exploitation by criminal actors.

By fLEXI tEAM