Tabcorp shares plunge on Austrac probe into anti-money laundering concerns

Tabcorp shares have plunged on the betting company’s disclosure it is being investigated by the financial crimes watchdog over suspicions it could breach anti-money laundering laws.

The group said AUSTRAC was looking at “a number of serious concerns” with Tabcorp’s ability to identify and stop money laundering and monitor its customers.

The probe was described as at an early stage, with the regulator still collecting information and there is no certainty that the investigation will result in action against Tabcorp.

Tabcorp chief executive Gillon McLachlan said he was “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.

Nonetheless, Tabcorp shares dived as much as 25 per cent to 84¢ before recovering some ground to be 22¢ lower at 93¢ as at 10.20am.

“Tabcorp has been informed by AUSTRAC that it has a number of serious concerns with Tabcorp’s ability to effectively identify, mitigate and manage its money laundering /terrorism financing (ML/TF) risks,” the company told investors.

“As a consequence, AUSTRAC has advised that it has commenced an enforcement investigation.

“This investigation will initially focus on evaluating Tabcorp’s compliance with its obligations under the AML/CTF Act in relation to having a compliant AML/CTF program, complying with that program and appropriately monitoring customers.

“AUSTRAC has advised that its investigation is at an early stage and its approach will be determined once sufficient evidence has been collected and assessed.

“AUSTRAC has also advised that all potential outcomes remain open, including the possibility that no further enforcement action will be taken.”