Multiple compliance failures see Tabcorp pay record AUSTRAC AUS $45 million fine

The Australian Transaction Reports & Analysis Centre (AUSTRAC) has issued Tabcorp Holdings its biggest ever fine of AUS $45 million (£27 million) for ‘extensive breaches’ of national anti-money laundering rules and compliance standards.

The fine has been forwarded to the Australian Federal Court for final approval, against Tabcorp NSW and Victoria enterprises which failed in to register AUSTRAC of multiple fraudulent/criminal activities on credit cards attached to organised crime syndicates.

Tabcorp governance has agreed to pay the record fine, on the condition that AUSTRAC withdraws any further allegations of non-compliance against the company. Should the Federal Court process the fine, Tabcorp governance will ‘recognise costs’ in its corporate financial statement for full-year 2016/17 (year ending 30 June 2017).

Issuing a corporate statement published, Tabcorp governance stated: “Tabcorp acknowledges that there were a number of deficiencies in its former AML/CTF program, which resulted in a serious contravention of the AML/CTF legislation.”

Australian business news sources have reported that to date Tabcorp has spent AUS $35 million (£21 million) fighting the two-year case. Seeking final closure, Tabcorp governance will have paid AUS $80 million to settle its AUSTRAC dispute. 

Industry insiders point that Tabcorp governance was eager to pay the fine to gain a ‘clean slate’ as the company keenly pursues its AUS $11 billion mergers with competitor Tatts Group (announced October 2016) to form an outright Australian gambling and betting market leader.

Currently being reviewed by the Australian Competition & Consumer Commission (ACCC), a ruling on the Tabcorp-Tatts is expected by March/April of this year.