One of New South Wales’ most iconic suburban club groups, Mounties, has found itself in the spotlight after the federal regulator raised serious concerns over alleged anti-money laundering (AML) failures. In a headline-grabbing move, AUSTRAC has launched Federal Court proceedings accusing the club chain of systemic non-compliance that may have opened the door to criminal exploitation.
AUSTRAC alleges that Mounties — which runs venues like Mounties Mt Pritchard, Manly Bowling Club, Harbord Diggers and Club Wyong — failed to correctly monitor patrons at its 1,400 pokies terminals. Key compliance shortfalls include insufficient customer risk assessments, inadequate staff training, and poor oversight of compliance services that were outsourced to third parties. In 2024, Mounties generated a staggering AUD 232 million in gaming revenue, but investigators claim this success came at a cost: a lack of basic safeguards ([turn0news4]).
“Mounties is one of the largest and most profitable club groups in NSW. They had a responsibility to prevent money laundering,” said AUSTRAC CEO Brendan Thomas. He warned that clubs dealing heavily in cash are inherently “high-risk zones” for laundering, particularly when compliance is lax.
Mounties has denied any wrongdoing and said it is fully cooperating with the regulator, promising to overhaul its compliance program where needed. Meanwhile, Clubs NSW has expressed eagerness to work with AUSTRAC to boost standards across the industry — with the regulator’s chief set to speak at their annual conference later this year.
The Federal Court will now weigh whether Mounties breached its obligations under Australia’s AML and counterterrorism financing laws, in what is shaping up to be a landmark case for pokies regulation in suburban Australia.
