-- Tabcorp Holdings (ASX:TAH) said Austrac launched an enforcement investigation after raising "serious" concerns about the company's ability to manage its money laundering and terrorism financing risks, according to a Thursday Australian bourse filing.
The company said the investigation will initially focus on evaluating its compliance with its obligations under the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act, including having a compliant AML/CTF program, complying with that program, and appropriately monitoring customers.
Austrac advised that its investigation is at an early stage, and its approach will be determined once sufficient evidence has been collected and assessed, with all potential outcomes remaining open, including the possibility that no further enforcement action will be taken, the company added.
"Tabcorp takes its anti-money laundering and counter-terrorism financing obligations very seriously. The Board and Executive are fully committed to collaborating with Austrac in the continuing uplift in Tabcorp's ML/TF risk maturity," said Tabcorp Chairman Brett Chenoweth.
The company's shares tumbled 27% in recent Thursday trade.