Australia’s national financial regulator AUSTRAC has entered into a binding agreement with bet365 that obliges the operator to strengthen its internal AML controls.
The system overhaul requires the implementation of an ongoing risk assessment approach “underpinned by clear methodology and processes”, accompanied by stronger suspicious transaction monitoring as risks evolve.
According to the regulator, the action follows an independent audit of bet365’s operations, which constituted that the above actions are needed to achieve an on-par regulatory compliance.
Brendan Thomas, AUSTRAC Chief Executive Officer, commented: “Gambling businesses pose an inherent money laundering risk and we are focusing on the risks to the Australian economy from money laundering through this sector.
“The gambling industry processes large volumes of money at high speed, often through anonymous digital channels. This creates opportunities criminals look to exploit.
“This means businesses need to continuously improve their systems to assess risks and monitor for suspicious activity because when controls fall behind, the consequences extend beyond a single company.”
Earlier in the year, Thomas reminded all businesses reporting to AUSTRAC about fulfilling their obligations under a newly-reformed AML regime that was signed into law with the AML/CTF Amendment Bill on 29 November, 2024. The goal – closing regulatory compliance gaps and aligning Australia closer to the Financial Action Task Force (FATF) expectations.
As such, AUSTRAC has begun a nationwide assessment of the internal controls of a number of gambling operators.
bet365 not the first on the list
Most notably, the financial watchdog filed a lawsuit against Entain Australia in December 2024, to be heard in the Federal Court of Australia on 30 November 2026, alleging systemic breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.
Another domestic player, Flutter-owned Sportsbet, was also subjected to AUSTRAC-mandated changes to its AML controls in May 2024.
The undertaking was offered by the operator itself after a review by AUSTRAC left it unsatisfied with Sportbet’s risk assessment and customer monitoring in place at the time.
Commenting on the recent outcome of the undertaking, Thomas concluded: “Sportsbet was required to undertake significant remediation to uplift its systems, controls and governance. AUSTRAC is now satisfied those requirements have been met.
“Completion of an enforceable undertaking does not lessen our expectations. Businesses like Sportsbet operating in higher-risk sectors must maintain robust, risk-based systems to prevent criminal exploitation.”
