Tabcorp is being taken to court over allegations of non-compliance with rules designed to stop money laundering and terrorism financing.
The financial intelligence agency, AUSTRAC (Australian Transaction Reports and Analysis Centre), has filed papers in the Federal Court against three Tabcorp group companies for “extensive, significant and systemic” non-compliance.
The civil action, with a maximum penalty of $17 million, is against Tabcorp Holdings Limited and Tabcorp’s NSW and Victorian wagering businesses.
Tabcorp runs the TAB, National Sportsbet, Tabaret and Keno.
AUSTRAC says it has provided a number of opportunities for Tabcorp to improve standards and compliance.
“Non-compliance of this nature provides opportunities for organised crime to exploit vulnerabilities and puts at risk the integrity of the Australian financial system,” AUSTRAC said in a statement.
“AUSTRAC works to keep dirty money out of our financial system, which helps protect the Australian community from serious and organised crime.”
Tabcorp said: “Tabcorp takes its compliance obligations extremely seriously. Tabcorp is reviewing the nature of the proceedings and will inform the market of its intended response.”
Tabcorp shares are down more than 2% to $4.875.