Tabcorp, the Australian wagering and keno giant, has been making the headlines over the last couple of days due to the court issues it faced. The Australian Transaction Reports and Analysis Centre (AUSTRAC) has taken Tabcorp to court and accused the company of having failed to obey the rules related to money laundering and counter-terrorism financing.
AUSTRAC is a government body dedicated to keeping the “dirty money” out of the Australian financial system and preventing the expansion of organised crime among the Australian communities.
According to the papers filed by AUSTRAC representatives, Tabcorp has systematically disobeyed the established rules and regulations concerning the anti-money laundering and counter-terrorism in Australia.
AUSTRAC officials announced that the next step is to start a thorough assessment process. They confirmed that Tabcorp has had plenty of chances to figure out the irregularities and start complying with the established rules but during that time, executives have remained reluctant to take the necessary actions.
According to the statement issued by AUSTRAC, the fact that Tabcorp did not comply with the rules provides the perfect environment for organised crimes. The Chief Executive of AUSTRAC, Paul Jevtovic, said that such a behaviour is simply intolerable and immediate actions should be taken in that direction.
The main concern of AUSTRAC is that the industries controlled by Tabcorp are prone to being involved in money laundering schemes and Mr Jevtovic said this factor cannot be neglected.
Tabcorp released a special brief statement on the matter and said that the compliance obligations have always been among company’s priorities but they are yet to release their response. The current CEO of Tabcorp, David Attenborough, was reluctant to provide more information about the legal issue but his spokespeople confirmed that he has always been strict when it comes to compliance obligations.
The proceedings have been taken against Tabcorp’s NSW and Tabcorp Holdings Limited. If found guilty, Tabcorp may be obliged to pay the maximum civil penalty amounting to $17 million. Tabcorp is accused of at least 100 breaches in the law.
AUSTRAC representatives announced that they were ready to work in collaboration with the Australian businesses but they would never put up with those that tend to forget the importance of complying with the established systems and controls.
Currently, the worth of the gambling industry in Australia is more than $25 billion. As a result, it is regarded as a sector where money laundering and some other crimes can be committed.
