AUSTRAC has directed Bankstown District Sports Club Ltd to appoint an independent auditor following concerns that the club’s anti-money-laundering (AML) controls may be insufficient to prevent exploitation by organized crime. The Sydney-based club operates multiple venues, including Bankstown Sports Club, The Acres Club, Bankstown Sports Bowls, Birrong Sports, Bankstown Golf Club, Baulkham Hills Sports, and Auburn Tennis Club.

The order, issued under section 162 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, requires the auditor to evaluate whether the club’s AML and counter-terrorism financing (CTF) measures are effective. This includes assessing risk-based programs to identify, mitigate, and manage money laundering and terrorism financing risks, evaluating the assessment of customer risks and service delivery methods, and verifying systems to detect suspicious activity. The audit is to be conducted at the club’s expense.

Poker Machines Under Scrutiny

AUSTRAC Acting CEO Katie Miller emphasized that gambling venues, particularly those with poker machines, are high-risk areas where criminals can convert illicit cash into seemingly legitimate funds. “Poker machines can be exploited by criminals to turn cash into apparently legitimate winnings, especially where controls are weak or warning signs are missed,” Miller said. She added that criminals may repeatedly insert cash with little genuine play and then cash out, making illicit funds appear legitimate.

Miller explained that strong controls and effective reporting are critical to prevent the abuse of gaming venues. “Money laundering fuels organised crime and all the harm that comes with it. Where we see signs of systemic weaknesses, AUSTRAC will intervene to protect the community and the integrity of Australia’s financial system,” she said.

Audit Scope and Regulatory Context

The external audit will review whether Bankstown Sports Club has implemented an effective, risk-based AML/CTF program, conducted proper risk assessments, and maintained sufficient monitoring systems for suspicious behavior. AUSTRAC will use the audit findings to guide any further regulatory actions and to strengthen compliance across the sector.

This intervention aligns with AUSTRAC’s ongoing focus on the gambling industry. The regulator has recently pursued civil penalty proceedings against Mount Pritchard District and Community Club (Mounties), entered an enforceable undertaking with online wagering provider Sportsbet, and launched an enforcement investigation into Tabcorp. Miller noted in a press release that clubs and pubs operate in high-risk environments but play an essential role in local communities. “Our job is to lift standards across the sector so criminal groups can’t use gambling venues to move or disguise illicit funds,” she said.

Bankstown Sports Club has stated it takes regulatory obligations seriously, including responsibilities relating to AML/CTF compliance, responsible gaming, and the service of alcohol. The organization has committed to cooperating fully with AUSTRAC during the external audit process, demonstrating its intent to strengthen compliance and protect the integrity of its operations.

By appointing an independent auditor, AUSTRAC aims to ensure that Bankstown District Sports Club adheres to best practices in monitoring, reporting, and mitigating risks linked to money laundering and terrorism financing, reinforcing the integrity of Australia’s financial and gambling systems.