An expose by the ABC cites an industry whistleblower’s revelations about AML practices in gaming venues, and accusation by MP Andrew Wilkie that over 90 per cent are not compliant.
The ABC and 4Corners report centres on a former employee of ClubsNSW, Troy Stolz, who worked as an AML (Anti-Money Laundering) and CTF (Counter-Terrorism Finance) compliance auditor for the clubs association.
Stolz claims organised crime operations such as drug dealers employ university students to play gaming machines at venues, depositing large amounts and withdrawing effectively laundered funds after a short time.
He believes the syndicates are willing to lose in the region of 20 to 30 per cent, on amounts intended to avoid triggering AML regulations. He offers that teams of ten people might hit “50 or 100 different venues”, which would amount to upward of half a million dollars a day washed.
Licensed gaming venues are required to report transactions over $10,000 to AUSTRAC (Australian Transaction Reports and Analysis Centre). AUSTRAC is the Federal Government department responsible for monitoring venues and their AML and CTF compliance.
The former Clubs employee claims AUSTRAC has greatly reduced the number of fines issued to pubs and clubs and is not doing enough to curb the problem, which he describes as “quite alarming … the amount of money that is being laundered through pubs and clubs in Australia”.
A spokesperson for AUSTRAC told the ABC it “engages closely with pubs and clubs and industry associations, including ClubsNSW, to help educate staff working in pubs and clubs so they know what to look out for”.
Stolz made contact with anti-gaming crusader Tasmanian independent MP Andrew Wilkie, armed with a 2019 ClubsNSW board paper.
Fronting parliament with the purported evidence, Wilkie claimed “90-95 per cent of NSW Clubs are operating illegally when it comes to money laundering and the funding of terrorism, and no-one is doing anything about it”.
ClubsNSW represents over 1,000 licensed club members in the state of NSW, and cites a proactive approach, with thousands of club employees reportedly completing the AML/CTF training in the past 18 months.
“If Andrew Wilkie has evidence of a licensed venue not meeting its AML/CTF obligations then he should raise the matter with AUSTRAC so the regulator can properly investigate,” said a spokesperson.
Despite his statements, no evidence has been put forward to qualify Stolz’s experience in or credentials regarding the pub industry, which is capped by far smaller limits on gaming machine numbers in most states.
Stolz is currently in a legal dispute with his former employer, ClubsNSW.
The publication also does not elaborate on how venues are failing to comply in instances of people playing machines and cashing out amounts below $10k.
Andrew Wilkie needs to “put up” or “shut up”