Australian Casinos Face Money Laundering Audit Amid Heightened Risk

Two Northern Australian Casinos Ordered to Undergo External Audit Over Money Laundering Risks

Two casinos in Northern Australia have been identified as high-risk targets for money laundering and will now undergo independent audits, as mandated by AUSTRAC, the country’s financial crimes watchdog.

The Ville Resort-Casino in Townsville and the Mindil Beach Casino Resort in Darwin were both flagged by AUSTRAC for “potential gaps and deficiencies” in their anti-money laundering (AML) and counter-terrorism financing (CTF) systems, risk management, and internal oversight.

Increased Scrutiny from Regulators

While acknowledging that these are relatively small operations, AUSTRAC CEO Brendan Thomas emphasized that they remain vulnerable to criminal exploitation. “We are watching and we will take further action,” said Thomas. “AUSTRAC is serious about driving illicit money out of the gambling industry in Australia and ensuring gambling businesses have strong anti-money laundering controls.”

AUSTRAC said the upcoming audits will assess whether the casinos are appropriately monitoring their customers, conducting risk assessments, and maintaining robust oversight of their AML/CTF programs. The scope of the audit will be defined by AUSTRAC, and the costs will be borne by the casinos themselves.

Broader Crackdown on Gambling Industry

This development follows a series of high-profile actions by AUSTRAC in recent years, including investigations and enforcement actions against major casino operators such as Crown Resorts, SkyCity, and The Star, as well as online betting companies like Entain, Sportsbet, and Bet365.

Casinos Respond to Audit Orders

In a statement, Ville Resort-Casino affirmed its commitment to cooperating with AUSTRAC. “The Ville Resort-Casino takes its obligations as a responsible casino operator incredibly seriously, particularly in relation to detecting and preventing financial crime,” a spokesperson said.

The casino stated that it had recently enhanced its AML/CTF program and looked forward to demonstrating these improvements during the audit.

Earlier in 2024, allegations that the Ville had paid an illegal junket operator with “cash and loyalty points” were dismissed by the Townsville Magistrates Court. The Ville is owned by the Morris Group, which has pledged to maintain close cooperation with regulators.

Meanwhile, Brad Morgan, General Manager of Mindil Beach Casino Resort, said the casino would continue to comply fully with state and federal regulations. “Mindil Beach Casino Resort takes its regulatory and harm minimisation obligations seriously, always striving for full compliance,” Morgan said. He noted that this includes areas such as anti-money laundering, responsible gaming, and alcohol service compliance.

AUSTRAC has not ruled out further action depending on the audit outcomes.