Gambling corporation Mounties faced legal action by AUSTRAC due to alleged AML compliance shortcomings
Australia's AUSTRAC Launches Legal Action Against Mounties Club Group
Australia's financial intelligence unit, AUSTRAC, has launched civil penalty proceedings against the Mount Pritchard District and Community Club (Mounties) for alleged serious and systemic breaches of anti-money laundering (AML) laws.
The legal action, which commenced on July 30, 2025, is currently underway in the Federal Court. AUSTRAC alleges that Mounties failed to maintain an adequate AML/CTF (counter-terrorism financing) program compliant with the law while providing gaming services, particularly through its approximately 1,400 poker machines across 10 venues in New South Wales.
The club's size and revenue, which amounts to hundreds of millions from poker machines, make it a significant player in the gaming sector. As a result, it bears a significant responsibility to manage the risks of money laundering properly, according to AUSTRAC.
The alleged breaches by Mounties involve failures to adopt and maintain a compliant AML/CTF program in accordance with regulatory rules. AUSTRAC alleges multiple deficiencies in Mounties' AML/CTF programme, including inadequate risk assessment, insufficient staff training, inappropriate transaction monitoring systems, deficient customer due diligence processes, and lack of proper independent review.
AUSTRAC's 2024 Money Laundering in Australia National Risk Assessment identified pubs and clubs as a medium risk sector. The regulator argues that these failures have left Mounties vulnerable to criminal exploitation for laundering money through its gaming machines.
Brendan Thomas, AUSTRAC CEO, stated that Mounties cannot outsource its AML/CTF obligations, even if aspects of its programme are outsourced to a third-party provider. If a reporting entity outsources key parts of its AML/CTF programme to a service that is not fit for purpose, without proper oversight or resourcing, they run a real risk of non-compliance, according to Thomas.
The Mounties club group owns 10 venues and operates approximately 1,400 poker machines across eight of its locations. No further updates on court proceedings or outcomes have been reported yet beyond the filing and commencement of these civil penalty proceedings.
Summary:
- Legal action initiated: July 30, 2025
- Court: Federal Court of Australia
- Allegation: Serious and systemic AML breaches
- Entity involved: Mount Pritchard District and Community Club (Mounties)
- Number of venues: 10
- Poker machines operated: About 1,400
- AUSTRAC’s claim: Failure to maintain compliant AML/CTF program, risk of money laundering
- Current status: Civil penalty proceedings filed and underway
The case is at an early litigation stage with AUSTRAC pursuing enforcement for compliance failures. According to Thomas, relying on third-party providers does not absolve a business of its obligations under the AML/CTF Act. If a reporting entity outsources key parts of its AML/CTF programme to a service that is not fit for purpose, without proper oversight or resourcing, they run a real risk of non-compliance.
- The ongoing legal action against Mounties Club Group dates back to July 30, 2025, in the Federal Court of Australia.
- AUSTRAC has accused Mounties of failing to maintain a compliant AML/CTF program, citing multiple deficiencies and potential risk of money laundering through its casino-games.
- The club's reliance on third-party providers, according to AUSTRAC CEO Brendan Thomas, does not absolve them from their AML/CTF Act obligations, especially when the outsourced service is not up to the mark.
- The Mounties club group, which owns 10 venues and operates around 1,400 poker machines, faces serious consequences if found non-compliant with AML/CTF regulations.
- This case serves as a reminder for the iGaming industry to prioritize compliance, especially in sectors like pubs and clubs, which AUSTRAC has identified as having a medium risk of money laundering.
