The Government's Australian Transaction Reports and Analysis Centre (AUSTRAC) has initiated civil penalty proceedings against Tab, Tabcorp Holdings and Tabcorp Wagering (Vic).
The maximum civil penalty a court may currently order for this practice is $17 million.
AUSTRAC's action follows a long and comprehensive process of assessment of the Victorian business' anti-money laundering and counter-terrorism financing compliance.
AUSTRAC reports it has provided a 'number of opportunities' for these companies to improve their standards and compliance, but they have failed to take the necessary steps.
The body says this type of non-compliance provides opportunities for organised crime to exploit vulnerabilities and puts at risk the integrity of the Australian financial system.
TAH issued a statement today that it 'takes its compliance obligations extremely seriously' and 'will inform the market of its intended response'.
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