AUSTRAC orders external AML audit at New South Wales club

Australia’s financial intelligence agency has directed Bankstown District Sports Club to appoint an independent auditor.

Australia.- The Australian Transaction Reports and Analysis Centre (AUSTRAC) has ordered Bankstown District Sports Club to appoint an external auditor to inspect its anti-money‑laundering (AML) controls. The regulator is concerned controls may not be strong enough to prevent organised crime exploiting gaming machines.

The action, taken under section 162 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, will require an independent review of whether the club is meeting its regulatory obligations and adequately managing the risks associated with cash gambling. The audit will assess whether the club has implemented an effective risk-based AML/CTF programme, properly evaluated the risks associated with its customers and services and established systems capable of identifying suspicious transactions and behaviour linked to money laundering or terrorism financing.

The audit will be conducted at the club’s expense and under a scope determined by AUSTRAC. The findings may influence whether further regulatory or enforcement action is required.

The regulator said criminals may attempt to legitimise illicit funds by inserting cash into poker machines, engaging in minimal gameplay and cashing out the remaining balance as apparently legitimate winnings.

AUSTRAC Acting CEO Katie Miller said: “Poker machines can be exploited by criminals to turn cash into apparently legitimate winnings, especially where controls are weak or warning signs are missed.”

She concluded: “Clubs and pubs play an important role in their communities, but they also operate in a high-risk environment. Our job is to lift standards across the sector so criminal groups can’t use gambling venues to move or disguise illicit funds.”

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Australia’s financial intelligence agency has directed Bankstown District Sports Club to appoint an independent auditor. Australia.- The Australian Transaction Reports and Analysis Centre (AUSTRAC) has ordered Bankstown District Sports Club to appoint an external auditor to inspect its anti-money‑laundering (AML) controls. The regulator is concerned controls may not be strong enough to prevent organised crime…