AUSTRAC Orders AML/CTF Compliance Audits at Two Northern Australian Casinos Amid Concerns Over Risk Controls

Australia’s financial intelligence agency, AUSTRAC, has placed two casino resorts in northern Australia under formal scrutiny, mandating external compliance audits in response to what it describes as “potential gaps and deficiencies in AML/CTF controls, risk and oversight.”

The regulatory action targets The Ville Resort-Casino in Townsville, Queensland and the Mindil Beach Casino Resort in Darwin, Northern Territory. Both casinos have been officially directed to engage independent auditors to conduct a comprehensive review of their anti-money laundering (AML) and counter-terrorism financing (CTF) programs.

Brendan Thomas, CEO of AUSTRAC, emphasized that while these establishments may not match the scale of Australia’s major operators, they still pose significant vulnerabilities due to the inherent nature of their operations. “Although they may be smaller than entities such as Crown Resorts and The Star, like all gambling venues, The Ville and Mindil Beach face heightened risk of exploitation by criminals,” Thomas stated in a public release.

The Ville Casino operates more than 370 gaming machines and 20 table games, in addition to offering sports betting services. Mindil Beach Casino Resort, on the other hand, runs over 600 poker machines and provides a variety of gaming table experiences across both mass-market and VIP segments, along with NT Keno.

AUSTRAC’s directive requires each casino to have an independent audit of their AML/CTF compliance frameworks, which includes a detailed money laundering and terrorism financing risk assessment. This assessment must address risks associated with the business model, customer base, and the operational methods used to deliver gaming services.

Furthermore, the scope of the audit, as defined by AUSTRAC, demands that both casinos demonstrate a governance framework that allows their boards and senior management to maintain “ongoing oversight” of AML/CTF programs. The businesses must also show that they are “appropriately monitoring customers” to detect and mitigate potential money laundering or terrorist financing risks.

The audits, which are to be conducted at the expense of each operator, form part of AUSTRAC’s broader crackdown on the gambling sector. “This action follows major actions we have taken against other casinos, Crown Resorts, Sky City, and The Star and online bookmakers, Entain, Sportsbet and Bet365,” noted Thomas, underscoring the regulator’s continuing focus on financial crime in the gaming industry.

Following the completion of the audits, AUSTRAC has indicated it will “assess whether any further regulatory action is required based on the outcomes of the audits.” The move signals an intensifying regulatory environment for all gambling operators in Australia, regardless of size, with AML/CTF compliance remaining a national enforcement priority.

By fLEXI tEAM