Bankstown Sports Club Under AUSTRAC Scrutiny Over Dirty Cash Clai
· automotive
Second Mega-Club in Firing Line Over Dirty Cash Claims
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has ordered an external audit of Bankstown Sports Club to assess its anti-money laundering controls, following a similar move against Mounties last year. The financial crimes watchdog is scrutinizing the club’s 745 poker machines, which have been at the center of alleged money-laundering operations.
The AUSTRAC order comes on the heels of a civil prosecution against Mounties, which admitted to allowing at least $226 million to be laundered through its machines over five years. This staggering figure is enough to fund illicit activities in several small countries. However, experts warn that it may only be the tip of the iceberg.
AUSTRAC acting chief executive Katie Miller has been vocal about the risks associated with pokie machines and large cash transactions. She emphasizes the importance of clubs understanding their risks, having strong controls in place, and reporting suspicious activity. But past measures have proven inadequate, allowing organized crime to infiltrate the industry.
The Mounties case highlighted egregious examples of money laundering through pokie machines. One woman described her job as “home duties,” but was actually involved in handing wads of cash to associates who inserted them into machines and then cashed them out with zero turnover. This brazen scheme has been happening under the noses of regulators.
Bankstown Sports Club has responded to the AUSTRAC order by saying it takes its regulatory obligations seriously and welcomes the opportunity to demonstrate its capabilities. However, words are cheap, and what matters is whether the club can actually prove that it’s taken concrete steps to prevent money laundering.
A 2022 report by the NSW Crime Commission found billions of dollars in dirty cash was being funneled through the state’s poker machines. The commission recommended mandatory cashless gaming. Premier Chris Minns has yet to respond to an independent panel’s report on this issue from last year, which is a damning indictment of the government’s failure to act decisively.
The AUSTRAC order is just the latest development in this ongoing saga. As we watch Bankstown Sports Club undergo its external audit, it’s hard not to wonder how many other clubs are vulnerable to money laundering and what kind of consequences perpetrators will face.
Ultimately, it’s up to the government to take decisive action on cashless gaming and ensure that regulators have the teeth they need to crack down on money laundering. Anything less would be a dereliction of duty. The issue is not just about the money – although $226 million is a significant amount – but also about keeping communities safe from organized crime and its associated harms. AUSTRAC’s order is a wake-up call for Bankstown Sports Club and the wider industry, and it remains to be seen whether they will listen.
Reader Views
- SLSara L. · daily commuter
It's staggering that we still haven't seen meaningful reforms in the pokie industry despite AUSTRAC's repeated warnings and high-profile cases like Mounties. While Bankstown Sports Club claims to take its regulatory obligations seriously, it's clear that more than just rhetoric is needed to address the systemic issues here. One concern that doesn't get enough attention is the role of accountants and auditors in enabling these illicit activities – they often have a vested interest in maintaining relationships with clubs, which can compromise their objectivity. Time for tougher action on all fronts.
- MRMike R. · shop technician
This is just another example of AUSTRAC playing catch-up with these clubs. We know they're not doing enough to prevent money laundering, and yet they're still raking in the cash from their pokie machines. The real question is what's being done to penalize them for past transgressions? I'd like to see some serious financial consequences for Bankstown Sports Club if they're found wanting, not just a slap on the wrist or a token fine. We need more teeth in our anti-money laundering laws to deter these clubs from turning a blind eye to dirty cash.
- TGThe Garage Desk · editorial
The AUSTRAC audit is long overdue for Bankstown Sports Club, but it's unlikely to uncover anything more sinister than what we've already seen at Mounties. The real question is whether this will lead to meaningful reforms or just another round of window dressing. It's time for the government to step in and take control of these clubs' dirty dealings.