Auditor engaged to see if club is meeting AML/CTF obligations
Sports club faces probe as regulatory body requires confirmation it is complying with the new guidelines.
AUSTRAC has ordered Bankstown District Sports Club to appoint an external auditor amid concerns over its anti-money-laundering (AML) program.
The federal agency believes the Sydney club’s controls may not be strong enough to stop organised crime exploiting poker machines.
AUSTRAC acting CEO Katie Miller said clubs and pubs sit on the frontline of Australia’s fight against money laundering.
“Poker machines can be exploited by criminals to turn cash into apparently legitimate winnings, especially where controls are weak or warning signs are missed,” Miller said.
“In gambling venues, criminals may repeatedly insert cash into poker machines, engage in little or no genuine play, and then cash out – turning illicit cash into funds that appear legitimate.
“That’s why it’s critical clubs and pubs understand their risks, have strong controls in place and report suspicious activity.
“Where we see signs of systemic weaknesses, AUSTRAC will intervene to protect the community and the integrity of Australia’s financial system.”
AUSTRAC’s order requires an independent auditor to assess whether Bankstown District Sports Club is complying with its AML/CTF obligations.
The audit will examine whether the club has an effective, risk-based AML/CTF program to identify, mitigate and manage money laundering and terrorism financing risks; conducted an appropriate assessment of the risks posed by its customers, services and delivery methods; and adequate systems to monitor customers and identify suspicious behaviour linked to money laundering or terrorism financing.
The scope of the audit has been set by AUSTRAC and will be conducted at the club’s expense.
