OK fess up, who's involved?
 

Underworld figures, drug dealers launder money through Tabcorp
Date
August 2, 2015 - 1:28PM

TABs have become a convenient method for organised criminals to launder money
TABs have become a convenient method for organised criminals to launder money
Underworld figures and drug traffickers are exploiting Tabcorp betting accounts to launder the proceeds of crime and avoid detection by law enforcement agencies.

Tabcorp accounts are also being used to conceal protection payments made to violent inmates running extortion rackets within the prison system.

The revelations come as the ASX-listed company is facing a landmark Federal Court action by government financial watchdog Austrac over allegations it has routinely flouted anti-money laundering regulations by failing to report suspicious transactions.

A Sun-Herald investigation has found major security flaws with Tabcorp's betting system that enables customers to open anonymous accounts that can be used by criminals to store funds and transfer money around the country.

In a test of the integrity of the Tabcorp system, The Sun-Herald opened two "fake" betting accounts using only basic personal information found on social media websites.

Tabcorp required no independent identity verification and money could be deposited and withdrawn from the accounts immediately, effectively circumventing Australia's anti-money laundering regulations.

Gambling and underworld sources say the weakness of the Tabcorp system means the company's online accounts and 2800 retail outlets are routinely used like a de facto banking network to hide cash from law enforcement authorities and the tax office.

"You can deposit $5000 in one venue and someone else can withdraw it anywhere there is a TAB, as long as you have the account number and PIN code," a source said. "It works just like a bank but the accounts aren't traceable to you so the system is very easy to manipulate."

It has also become common for criminal figures to open accounts in the names of family members and associates or "buy" them from people desperate for money.

The Sun Herald understands the same kind of weak ID verification systems are used throughout the gambling industry.

Law enforcement sources say betting accounts have become an "easy" way for criminals to launder the proceeds of crime.

"The hiding of unlawfully obtained cash amongst legitimately obtained cash is a standard money-laundering practice," said Detective Superintendent Scott Cook, commander of the NSW Police's Organised Crime Squad.

"Betting accounts are just one of the many means available to criminal syndicates to conceal the source of cash."

Victoria Police has described the process as "dirty money goes in and slightly cleaner money comes out".

A prison "money exchange"

The Sun-Herald can also reveal that prison inmates have also been establishing Tabcorp betting accounts to facilitate payments for drug dealing and extortion rackets run from inside Victoria's maximum security prison system.

Guards have been seizing lists of betting account numbers, amounts owed and paid, and contact details for accomplices outside prison when searching the cells of the ringleaders, prison sources say.

Family members of victims said they have been forced to make regular cash deposits into TAB accounts to prevent their relatives being bashed or raped in what has been described as a "common practice" by prison standover men.

"There's lots of bullying the inmates into getting their families to put money into TAB accounts so in turn they can get drugs bought and brought into the prison through visitors," a source said.

"Inmates find out information about other inmates families – where they live, where their kids go to school, etc and threaten that they will be visited on the outside if demands aren't met with payments to the TAB accounts."

In 2010, a TAB account registered to an associate of Matthew Johnson, leader of ultra-violent prison gang Prisoners of War, was discovered in the cell of one of Australia's most notorious criminals in the wake of Johnson's murder of drug kingpin Carl Williams.

It is understood Tabcorp has not been asked by police to provide any information in relation to the Carl Williams murder.

A spokesman for Tabcorp said it "takes attempts to utilise our services for improper purposes very seriously" and the company works "collaboratively" with law enforcement agencies and regulators.

"We make adjustments to our systems, controls and monitoring in response to emerging risks and in particular, we continue to refine our customer ID verification processes," he said.

"Anyone who has any information about illegal activities which may have taken place using a TAB account is urged to inform the police."

But money-laundering experts say gambling and financial organisations often undertake only minimum identification procedures when customers open new accounts.

"It is well known that the gambling sector is a high-risk industry for money laundering and terrorist financing," said Chris Douglas, financial crime consultant with Malkara Consulting.

"Organised crime can easily defeat a customer onboarding program where a reporting entity only collects the minimum identification."

Tabcorp is also facing up to $17 million in fines after Commonwealth financial watchdog Austrac launched a civil action last month alleging the gambling giant has committed widespread violations of anti-money-laundering laws. They include claims there has been a systemic failure to report suspicious transactions and appropriately confirm identities.

cvedelago@theage
Copyright © 2015 Fairfax Media


Read more: http://www.smh.com.au/nsw/underworl...l#ixzz3heMcC1Ph

It was me!

Well it was back in the late 80's early nineties before the Internet. We use to use our phone TAB account to move money.

In those days, it cost about $10 to send money via Australia Post to get it somewhere the same day. $10 was a lot in those days.

I find that hard to believe, the Tabs were very much on the ball about using those accounts, i remember one day winning a few grand at a tab that was frequented by some shady guys and i didn't want to risk not getting home so i deposited in to my Tab account and a few day later got it out from a different Tab, with in 2 days i had the Tab ringing me asking what was going on and i was going to have my account closed, i explained it to the person and the only reason they accepted my explanation was the guy grow up around the area so new the place.

Used it regularly, NSW TAB, never had a problem. Rarely used the phone betting service as well.

Might add, we weren't talking amounts in the Thousands. Couple of hundred at most.

So that's how my 5k was taken out of my account. And here's me thinking it was my crap betting that had lost it. :D

Only joeking.

Totally agree with Shaun here.
A mate of mine deposited a couple of hundred he owed me at a TAB in western Qld into my phone acc and I withdrew it to go to the track in Brisbane the next day, I got an email from Unitab stating that they were not a Bank, and any such further transactions would incur a fee for transferring money.

Be over 20 years since I last did it. Simple enough these days to put it direct into a bank account and have access that way. Looks like the TABS have tightened up as have the banks.

I got the Trifecta up the year Shocking won and paid over 9K on IAS. I had all sorts of problem getting it out. First of all I had to do the ID things with them (I never thought I would be withdrawing). Then they would only pay it into the account I deposited from which was my credit card which had a limit of 3K and I owed very little.

The bank got sus about a large amount of money being deposited into a credit card account putting it over 3 times as the limit in credit and didn't inform me until I enquired several days after IAS said they had paid me. I then had to prove to the bank that my ill gotten gains were legitimate before I could get the cash.