Australia's financial crime watchdog, AUSTRAC, has cleared online betting firm Sportsbet after the company completed required improvements to its anti-money laundering controls. The firm had admitted to serious deficiencies two years ago.
The clearance signifies that Sportsbet has addressed significant compliance failures, reducing its regulatory risk and potentially avoiding further penalties. It also highlights AUSTRAC's ongoing scrutiny of the gambling sector for financial crime vulnerabilities.
Australia's financial crime watchdog, AUSTRAC, announced on Friday that online betting firm Sportsbet has successfully completed the required improvements to its anti-money laundering controls. This comes two years after the company admitted to serious deficiencies in its compliance with anti-money laundering and counter-terrorism financing obligations.
AUSTRAC accepted Sportsbet's remediation undertaking in 2024, following concerns raised about the company's risk assessment, customer monitoring, and suspicious matter reporting. AUSTRAC CEO Brendan Thomas stated that Sportsbet was required to undertake significant remediation to uplift its systems, controls, and governance, and these requirements have now been met. An external auditor has assured the regulator that the company has implemented the necessary measures.
AUSTRAC continues to closely monitor the gambling sector, which it deems vulnerable to money laundering risks, particularly in the online environment. The watchdog had initially ordered an audit of Sportsbet, owned by Flutter Entertainment, in 2022 amid a surge in online betting in Australia.
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