Tabcorp settles AUSTRAC record AUS $45 million compliance fine

Tabcorp settles AUSTRAC record AUS $45 million compliance fine

by 16.03.2017 0 comments

The Australian Federal Court has today approved ASX-listed Tabcorp Holding’s AUS $45 million (£27 million) settlement with financial watchdog AUSTRAC relating to severe breaches of its money-laundering code and corporate compliance failures.

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

Tabcorp CEO David Attenborough commented on the matter: “Tabcorp is pleased to have concluded the proceedings. We remain firmly committed to continuing to work co-operatively with AUSTRAC into the future. We have made a significant investment in enhancing our AML/CTF compliance over the last three years and remain focussed on being the industry leader in regulatory compliance across all of our operations. This is in line with our vision to be the world’s most respected gambling-led entertainment company.”

The record AUSTRAC fine relates to Tabcorp NSW and Victoria enterprises which failed in to register AUSTRAC of multiple fraudulent/criminal activities on credit cards attached to organised crime syndicates.

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.

The firm’s full AUSTRAC settlement follows this week’s surprise news that Tabcorp governance has placed a direct application with the Australian Competition Tribunal (ACT), to be its Tatts Group Merger deal regulatory supervisor.

Following a tough 2016 for the operator, an under pressure Tabcorp governance has been pressed by investors and stakeholders to deliver on its AUS $11 billion corporate merger with Tatts Group creating the outright Australian market leading gambling enterprise.

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