Australia’s financial intelligence unit, AUSTRAC, has ordered two casinos — Ville Resort-Casino (Townsville, Queensland) and Mindil Beach Casino Resort (Darwin) — to undergo external audits due to potential breaches of anti-money laundering and counter-terrorism financing (AML/CTF) laws.

According to AUSTRAC, “gaps and deficiencies” were identified in the internal control systems of both establishments.

“Casinos, like all gambling venues, are particularly vulnerable to criminal exploitation,” noted AUSTRAC CEO Brendan Thomas.

“My message to boards and CEOs of gambling businesses, including pubs and clubs with gaming machines, is to make sure you comply with Australian money laundering laws and take your responsibility to tackle money laundering seriously; we are watching and we will take further action. Money laundering harms our economy, and it allows criminals to profit from some of the most awful crimes – we need to stamp it out.”

The audit will focus on assessing how well both casinos comply with legislation related to anti-money laundering and counter-terrorism financing (AML/CTF). Specifically, it will examine the effectiveness of their risk identification and mitigation processes, customer monitoring practices, and threat assessments.

Once the audit is complete, AUSTRAC will decide whether additional regulatory measures are required, depending on the findings.

This initiative is part of AUSTRAC’s broader strategy to protect the gambling sector from criminal influence. The agency had previously reported that Entain’s Australian subsidiaries failed to respond to suspicious betting activity linked to individuals with ties to drug trafficking.

Entain CEO Stella David stated that the company takes the allegations — which cover the period from 2015 to 2022 — extremely seriously and is fully cooperating with AUSTRAC.

AUSTRAC has previously taken strong enforcement action against major industry players such as Crown Resorts, SkyCity, and The Star, as well as online bookmakers Sportsbet and bet365, following similar investigations.

According to Michael Phelan, former head of the Australian Criminal Intelligence Commission (ACIC), more than AU$64 billion ($40.3b) is laundered annually in the country through various schemes.

In addition to its actions targeting the gambling sector, AUSTRAC has also tightened oversight of the cryptocurrency market. One crypto ATM operator was denied registration renewal, while others have been subjected to restrictions — including a transaction limit of AU$5,000 ($3150).

AUSTRAC chief Brendan Thomas stated that in recent months, the agency has detected activity consistent with scams, fraud, and other forms of illegal conduct.

Particular concern surrounds the 60–70 age group: AUSTRAC data shows this demographic accounts for over 29% of the total value of crypto ATM transactions. Around 150,000 transactions are conducted annually through these machines, amounting to approximately AU$275 million ($174m) — with the vast majority involving cash deposits for cryptocurrency purchases.

“It is a huge concern that people in this demographic are overrepresented as customers using cash to purchase cryptocurrency and, as evidence suggests, that a large number of 60-70 year old users are victims of scam activity,” said Thomas.

“The conditions are designed to help protect individuals from scams by deterring criminals from directing them to a crypto ATM, as well as to protect businesses from criminal exploitation. In light of the risks and harms, we consider it is absolutely necessary to ensure the sector meets minimum standards and reduces the criminal misuse of crypto ATMs.”

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