AUSTRAC identified 10 “sample suspicious customers” who should have been subject to enhanced customer due diligence, including eight that it had identified as engaging in suspicious play, seven that it had flagged with AUSTRAC and two who had not been identified but should have been due to their gambling being inconsistent with their reported source of wealth.
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Each of them had exhibited suspicious behaviour such as frequent play, engaging in high turnover play at odds with their employment status, inserting large sums of notes with little or no betting activity and receiving numerous high-value payouts by cheque.
Some were alleged to have given or received cash from other patrons and collected tickets from, or given tickets to, other patrons to redeem them. Some had allegedly engaged in conduct that prompted investigations by Liquor and Gaming NSW.
They collectively wagered $139 million in turnover between 2019 and 2023, including reinvested winnings, and pulled out $10 million in additional payouts. But Mounties allegedly failed to monitor them, check their source of funds or review whether it should continue to deal with them.
“In spite of Mounties being aware of the high ML/TF [money laundering/terrorism financing] risk posed by the sample suspicious customers, Mounties either failed to consider whether ongoing business relationships ought be maintained with the customers or concluded that ongoing business relationships ought be maintained notwithstanding the ML/TF Risk posed by the customers,” AUSTRAC alleged.
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“[Electronic gambling machines] constitute a money laundering risk because they primarily accept cash and because cash continues to be the primary method by which criminals obtain wealth from dealing in illicit commodities.”
Over the four-year period under examination, Mounties’ customers staked $4 billion on poker machine gaming, and the club group pulled in revenue of $459 million.
Mounties was approached for comment. It said in a statement last week that it had co-operated with AUSTRAC throughout the investigation and continued to work constructively with the regulator.
“As a matter of priority, we are reviewing AUSTRAC’s originating application and concise statement, relating to alleged contraventions of our obligations to maintain a compliant program and conduct appropriate ongoing due diligence of customers,” the statement said.
“We take our anti-money laundering obligations seriously and have been dedicating significant investment and resources to transform our AML/CTF capabilities since being notified by AUSTRAC of its concerns.”
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