AUSTRAC Steps In on Suspected AML Weaknesses at NSW Club

AUSTRAC has ordered Bankstown District Sports Club Ltd to appoint an external auditor amid concerns its anti-money‑laundering (AML) controls may not be strong enough to stop organised crime exploiting poker machines and gambling venues.

AUSTRAC Acting CEO Katie Miller said clubs and pubs sit on the frontline of Australia’s fight against money laundering, particularly where large volumes of cash and poker machines are involved.

“Poker machines can be exploited by criminals to turn cash into apparently legitimate winnings, especially where controls are weak or warning signs are missed,” Ms 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.

“Money laundering fuels organised crime and all the harm that comes with it.

“Where we see signs of systemic weaknesses, AUSTRAC will intervene to protect the community and the integrity of Australia’s financial system.”

The order, made under section 162 of the
Anti
‑
Money Laundering and Counter
‑
Terrorism Financing Act 2006
, 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

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.

This action forms part of AUSTRAC’s ongoing regulation of the gambling sector, including civil penalty proceedings involving Mount Pritchard District and Community Club (Mounties), an enforceable undertaking with online wagering provider Sportsbet, and an enforcement investigation involving Tabcorp.

“Clubs and pubs play an important role in their communities, but they also operate in a high-risk environment,” Ms Miller said.

“Our job is to lift standards across the sector so criminal groups can’t use gambling venues to move or disguise illicit funds.”

The findings of the audit will assist Bankstown District Sports Club to strengthen its compliance and will inform AUSTRAC whether any further regulatory action is required.

More information about AML/CTF obligations and the consequences of non‑compliance is available on the AUSTRAC website.

Media contact

Email:
media@austrac.gov.au

Phone: 02 9950 0488