Ex-AFP officer says the Australian horse racing industry and governments could do more to stop racing being used to launder money.Ex-AFP officer says the Australian horse racing industry and governments could do more to stop racing being used to launder money.
Money laundering is the process of “cleaning” money that comes from criminal activities, such as drug dealing, so that it looks like it has come from a legitimate source.“The Chinese government restriction on moving capital out of country – $50,000 – so even normal businesses structure their payments,” said McTaggart. “Any mechanism that can get money out of China will be jumped on.”
Austrac confirmed to Guardian Australia that while corporate bookmakers and on-course bookmakers are subject to anti-money laundering rules, Austrac’s regulation does not cover broader ownership, purchase and selling of thoroughbred horses. He said the stewards were responsible for administering the fit and proper test that applies to racing, but they also had other duties including ensuring integrity in racing.
Because of its specialised nature, using horses as a form of money laundering would take some expertise. He said it’s likely those criminals who are attracted to it are also doing it partly as a leisure activity, using some of their proceeds of crime. Horse ownership records are held by Racing Australia, require that a person be nominated as an owner and that other shareholders be identified.
McTaggart said the law has now been changed to allow crime authorities to take an order over the share of an asset and to leave it in place, rather than seizing it with all the attendant problems., Andrew Jones, said that as a general proposition, monitoring money laundering and the proceeds of crime was the responsibility of Austrac and the police in the first instance.
Flower, an owner of champion racehorses and former baggage handler, is currently serving 28 years in prison for his role in importing 225kg of cocaine, after pleading guilty in 2022