Bet365’s Australian subsidiary, Hillside (Australia New Media) Pty Ltd, has committed to rectifying deficiencies in its anti-money laundering and counter-terrorism financing (AML/CTF) controls as part of a remediation agreement with the Australian Transaction Reports and Analysis Centre (Austrac). This development was reported by Austrac last week.
The enforceable undertaking, accepted by Austrac’s chief executive Brendan Thomas in early July 2025, follows a comprehensive compliance assessment and an external audit that scrutinized Bet365’s AML/CTF practices from July 1, 2016, to November 2, 2022.
Concerns regarding the company were initially raised by Austrac in August 2022, leading to a requirement for an external audit by November 2022. At the time of the audit, Austrac's chief executive emphasized the need for corporate bookmakers to implement effective systems to manage risks associated with money laundering and terrorism financing. He noted, "Businesses without adequate processes in place to manage those risks leave themselves vulnerable to exploitation by criminals."
Reports following the audit, including a significant one dated September 12, 2023, and an independent review conducted in February 2025, identified serious shortcomings within Bet365’s compliance framework.
Key findings indicated that Bet365 had failed to maintain a sufficient AML/CTF program, violating section 81 of the AML/CTF Act. The regulator also noted the absence of ongoing customer due diligence (OCDD) for certain clients.
In response, Bet365 acknowledged these issues and voluntarily agreed to implement remedial measures under section 197. The company is required to carry out a revised risk assessment concerning money laundering, terrorism financing, and proliferation financing (ML/TF/PF). Additionally, it must enhance customer risk assessment models and implement improved control documentation and testing practices.
A final auditor report is due to be submitted to Austrac by July 30, 2027, to verify the complete implementation of the remedial actions. A preliminary progress report is expected by December 31, 2026.
Austrac has outlined expectations for the remediation process, which includes advancing AML/CTF reforms and enhancing the identification and mitigation of emerging risks. The enforceable undertaking will remain in effect until it is officially canceled by Austrac or withdrawn by Bet365.
In related news, Austrac initiated civil penalty proceedings against Entain in December 2024 for similar AML and CTF deficiencies. The company admitted to “certain deficiencies” in its past compliance program while disputing some of Austrac's allegations and interpretations in its case.
