Tabcorp in legal battle
WAGERING and keno operator Tabcorp is facing legal action over allegations it has failed to comply with antimoney laundering and counterterrorism financing laws.
Financial intelligence unit AUSTRAC claimed it had made a long and comprehensive assessment of Tabcorp’s compliance and it had failed to take steps to make improvements. The laws require companies to identify and verify customers and report suspicious matters and transfers funds.
AUSTRAC has launched civil penalty proceedings in the Federal Court, and Tabcorp faces a maximum penalty of $ 17 million.
“Non- compliance of this nature provides opportunities for organised crime to exploit vulnerabilities and puts at risk the integrity of the Australian financial system,” AUSTRAC said.
Tabcorp acknowledged the action saying it “takes compliance obligations extremely seriously”. Shares in Tabcorp dropped 4.2 per cent, to $ 4.77.