AUSTRAC probes Tabcorp over money laundering concerns

Australia's financial intelligence agency, AUSTRAC, has commenced an enforcement investigation into gambling giant Tabcorp (ASX:TAH), following a compliance assessment that raised "serious concerns".

The regulator informed the company that its current systems may be insufficient to effectively identify, mitigate, and manage risks associated with money laundering and terrorism financing.

The investigation is set to focus heavily on Tabcorp’s adherence to the AML/CTF Act, specifically scrutinising the integrity of its formal compliance programme and the effectiveness of its customer monitoring protocols.

While the probe signifies an escalation in regulatory oversight, AUSTRAC noted that the investigation is in its early stages.

All potential outcomes remain on the table, including the possibility that the regulator may conclude the matter without further enforcement action once all evidence is assessed.

Chairman Brett Chenoweth emphasised the Board’s commitment to "uplifting" the company's risk maturity, while Managing Director and CEO Gillon McLachlan reiterated his focus on leading a "compliant and safe company".

McLachlan noted that strengthening risk capability is a core pillar of Tabcorp’s ongoing internal transformation.

The news serves as a stark reminder to the Australian gaming industry of the rigorous standards expected by federal regulators.

At the time of reporting, Tabcorp’s share price was $0.90.