Tabcorp shares plummet amid AUSTRAC investigation
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More news: Shares in Tabcorp sank in afternoon trade after the gambling company was flagged for a “number of serious concerns” by AUSTRAC, which has launched an investigation into the company’s anti-money laundering and counter-terrorism financing compliances.
Shares had plunged 21% to 90 cents at 1:53pm.
AUSTRAC opens enforcement investigation into Tabcorp, flags ‘serious concerns’
The news: Financial crimes regulator AUSTRAC has opened an enforcement investigation into gambling company Tabcorp after outlining a “number of serious concerns” with the group’s ability to manage money laundering and terrorism financing risks.
The context: The investigation will initially focus on evaluating Tabcorp’s compliance with its obligations under the anti-money laundering and counter-terrorism financing (AML/CTF) act. These relate to the company having a compliant AML/CTF program, compliance with that program, and appropriately monitoring customers.
AUSTRAC told Tabcorp that the investigation is at an early stage and its approach will be determined once sufficient evidence has been collected and assessed.
The regulator has also advised that “all potential outcomes remain open”, including no further enforcement action.
What they said: ”Tabcorp takes its anti-money laundering and counter-terrorism financing obligations very seriously,” said Tabcorp chairman Brett Chenoweth.
“The board and executive are fully committed to collaborating with AUSTRAC in the continuing uplift in Tabcorp’s ML/TF risk maturity.”
Tabcorp chief executive Gillon McLachlan commented: “I am committed to leading a compliant and safe company that understands its risk obligations.”
“Uplifting our risk capability has been an ongoing part of the company’s transformation and we will work constructively with AUSTRAC through this process,” he said.
The source: ASX
