Australia Banks Partner with AUSTRAC in Fight Against Financial Crime

Australia Banks Partner with AUSTRAC in Fight Against Financial Crime! (Photo from austrac.gov.au)

AUSTRAC, the financial intelligence regulatory body in Australia, has called on banks to help in the fight against organised crime. The authority recently announced that it would carry out a due diligence probe on three of the country’s biggest land-based casino companies, and has now revealed that local banks will prove to be important partners as they look to clean up the Australian gambling industry. AUSTRAC is the government authority tasked with preventing, detecting, and acting against criminal financial abuse in Australia, and following the unsavoury findings of an enquiry into Crown Resorts, the body will now probe deeper into the operations of major Australian casino companies.

Money laundering has been a hot topic in Australia since Westpac Bank was fined AU $1.3 billion at the end of 2020. The bank admitted it had breached money laundering and terrorism financing laws and received the largest fine in Australia’s history. This was compounded when Crown Resorts were fined AU$22.5 million in May following an enquiry by the Victorian Royal Commission, which unearthed money laundering and organised crime within the land-based casino firm.

Now, despite a combative history with the banks, AUSTRAC has enlisted banks to continue the fight against financial crime. This follows the authority joining forces with the FBI and Australian Federal Police in a high-profile investigation into money laundering and other financial crimes in Australia. At the forefront of that investigation is the Australian casino sector.

The Westpac Bank fine comes after it was revealed the bank had allowed a total of AU$ 11 billion in illegal transactions in 2019. It is believed that much of that money was used to fund sex trafficking in several South East Asian countries. That fine is double the AU$ 730 million imposed on the Commonwelth Bank in 2018 following similar accusations.

Three Casino Operators Probed in Fight Against Financial Crime

AUSTRAC recently informed Crown Resorts, The Star Entertainment Group, and SkyCity Entertainment that it had already begun a probe into the operations of each firm. These probes followed the findings of Operation Slalom, an investigation that found anti-money laundering and counter-terrorism funding programs at Australian casinos were of a poor standard.

The probes could lead to serious consequences for the owners of Australias largest casino companies. Infractions could result in license restrictions, financial penalties, and even criminal prosecution. Local banks are expected to provide transparent assistance during these probes as AUSTRAC looks to detect any financial crime carried out at the three casino companies.

Casinos are a natural risk with regards to money-laundering, but the authority believes the casino industry has not done nearly enough to protect against it. AUSTRAC shifted its gaze firmly on the goings-on at land-based casinos in the country, and this could prove to be an uncomfortable ride for the casino owners.