Gaming group Tabcorp has been fined $45 million for breaching money laundering and terrorism financing regulations.
The civil penalty, the highest against a company in Australian history, follows a long investigation by AUSTRAC, Australia’s financial intelligence body.
AUSTRAC alleged more than 200 contraventions of Australia’s money laundering and counter-terrorism financing laws.
Tabcorp and AUSTRAC last month entered into an agreement to settle the Federal Court action.
Papers were first filed in the Federal Court in 2015 against three Tabcorp group companies. Today the court found Tabcorp had broken the law 108 times over five years.
Tabcorp runs the TAB, National Sportsbet, Tabaret and Keno.
CEO David Attenborough says he’s pleased the proceedings have ended.
“We remain firmly committed to continuing to work co-operatively with AUSTRAC into the future,” he says.
He says the company has made a significant investment in enhancing compliance.
“This is in line with our vision to be the world’s most respected gambling-led entertainment company,” says Attenborough.
Tabcorp will recognise the $45 million expense as a significant item in its full year financial statements.
The legal proceedings have been a drain on Tabcorp.
Net profit for the six months to December fell 28.1% to $58.9 million. Revenue was up 2% to $1.16 billion.
The result was within analyst forecasts. Stripping out significant one-off costs, underlying profit was up 5.3% to $102.7 million.
Tabcorp and Tatts in October announced a deal to create a diversified gambling entertainment group and ASX 50 company valued at $11.3 billion and with combined revenue of more than $5 billion.
The merger is expected to be completed by mid-2017.
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