Tabcorp confirms that a compliance assessment is being undertaken by AUSTRAC relating to anti-money laundering (AML) failures
Tabcorp’s shares slumped by more than 23 per cent in Sydney Thursday after the Australian government’s financial intelligence agency commenced an enforcement investigation against the company.
The operator has been informed by AUSTRAC that the financial intelligence agency has a number of serious concerns with Tabcorp’s ability to effectively identify, mitigate and manage its money laundering / terrorism financing (ML/TF) risks.
As a consequence, AUSTRAC has commenced an enforcement investigation that will initially focus on Tabcorp’s compliance with its obligations under the AML/CTF Act.
AUSTRAC’s investigation is at an early stage and its approach will be determined once sufficient evidence has been collected and assessed. The agency said that all potential outcomes remain open, including the possibility that no further enforcement action will be taken.
“Tabcorp takes its anti-money laundering and counter-terrorism financing obligations very seriously,” said Tabcorp chairman Brett Chenoweth. “The Board and Executive are fully committed to collaborating with AUSTRAC in the continuing uplift in Tabcorp’s ML/TF risk maturity.”
Tabcorp managing director and CEO Gillon McLachlan added: “I am committed to leading a compliant and safe company that understands its risk obligations. Uplifting our risk capability has been an ongoing part of the company’s transformation and we will work constructively with AUSTRAC through this process.”
Shares in Tabcorp Holdings Ltd (ASX:TAH) closed 23.48 per cent lower on the news at A$0.88 per share in Sydney Thursday.