NSW clubs ‘acutely aware’ of money laundering laws
ClubsNSW says its members are “acutely aware” of anti-money laundering laws and had recently met with the financial crime watchdog to understand what was expected for best practice compliance.
The peak body for the state’s 1000-plus clubs, which host about 65,000 pokies, also backed bringing lawyers, accountants and real estate agents under anti-money laundering and counter-terrorism financing laws.
The introduction of cashless gaming machines may help stamp out money laundering. Peter Braig
“We would encourage other industry bodies — whether they represent accountants, lawyers or real estate agents — to work collaboratively with the regulator to help stamp out financial crime,” a spokeswoman said.
The Australian Financial Review on Tuesday revealed AUSTRAC is targeting the tens of billions of dollars fed into poker machines across NSW clubs, in its latest salvo designed to crack down on the laundering of dirty money in the gambling industry.
In his first major interview since commencing his five-year term in January, AUSTRAC chief executive Brendan Thomas said the watchdog was having a look at clubs in a much more focused way and also warned that the failure to include some professionals in the AML/CTF regime left the back door “swinging wide open” to drug dealers, human traffickers and murderers.
NSW Minister for Gaming and Racing David Harris cited the push towards cashless gaming machines as a key plank to stamp out money laundering.
Mr Harris pointed to the establishment last year of the Independent Panel on Gaming Reform to oversee a cashless gaming trial in pubs and clubs and make recommendations about further possible reforms.
“One of the trial’s key objectives is to examine the feasibility and acceptance of implementing cashless gaming technologies to reduce money laundering in NSW clubs and hotels,” he said
“The NSW government will consider the recommendations put forward by the independent panel as part of their road map in gaming reform following the trial.”
ClubsNSW said in a statement that the industry was working with the NSW government on a cashless gaming trial which will likely involve measures to prevent money laundering beyond what is currently required.
A NSW Crime Commission-led review in 2022 found it could not tell how much of the $95 billion fed through pokies in the state annually were proceeds of crime, but it was substantial and primarily from drug dealing.
NSW Crime Commissioner Michael Barnes at the time said poker machines offered criminals one of the last remaining safe havens where cash from criminal enterprises could be “cleaned” or gambled with virtual impunity.
“The lack of traceable data collected by EGMs means the exact scale of this criminal activity is impossible to determine, but it is clear from our investigations it involves many billions of dollars every year,” he said.
Three in four of the almost 90,000 pokies in NSW are in clubs, many of which are “massive” and rival Sydney’s Star casino, AUSTRAC’s Mr Thomas said.
