In a recent announcement to the Australian Securities Exchange (ASX), Tabcorp revealed they are undergoing a compliance assessment by AUSTRAC due to several significant concerns regarding their platform’s ability to tackle illegal activities. These issues primarily relate to potential lapses in preventing money laundering and financing of terrorism.
Tabcorp indicated that the assessment would scrutinise their adherence to existing laws and regulations, stating that they are in the preliminary stages of this investigation. Notably, AUSTRAC has communicated that all possible outcomes are still on the table, which includes the possibility that no enforcement actions may follow.
Despite the absence of any formal allegations against the company, Tabcorp’s share price experienced a sharp decline, plummeting nearly 23% at market opening. In light of these developments, Chairman Brett Chenoweth reaffirmed the company’s commitment to combating money laundering and financing terrorism, emphasising their full cooperation with AUSTRAC.
Managing Director and CEO Gillon McLachlan, who previously led the AFL, expressed his dedication to ensuring that the company operates within legal confines. He emphasised a commitment to enhancing the company’s risk management capabilities, an ongoing focus as part of their strategic transformation.
Furthermore, McLachlan stated that they intend to work collaboratively with AUSTRAC throughout the compliance process, reinforcing their seriousness regarding their anti-money laundering and counter-terrorism financing responsibilities.
As they navigate this investigation, Tabcorp aims to maintain transparency and compliance, continually reiterating their pledge to uphold legal standards and improve their operational integrity amid scrutiny from Australia’s financial regulatory authorities.