The law stopping clubs and pubs from banning people suspected of laundering money through pokies

Punters could be banned from pubs and clubs if they are suspected of money laundering through poker machines — but licensees have to get over one legal hurdle first.

Punters suspected of money laundering would be banned from pubs and clubs under a raft of options being considered by the NSW Crime Commission to clean up the industry.

A centralised register of banned and excluded patrons could also be established and shared among licensed venues with electronic gaming machines as part of a raft of anti-money laundering measures being explored by the crime-fighting authority.

The options have been raised in an issues paper released by the commission on Friday as it conducts an inquiry into money laundering in pubs and clubs.

It is the third issues paper to be released as part of the inquiry, with the other two flagging credit limits on pokies, tickets that would include the identity of the player, a requirement for club and hotel staff working with gaming machines to declare they have no connections with organised criminal groups or people involved in serious crime, and club board members and hotel managers to be forced to undergo formal training on anti-money laundering.

The inquiry is being conducted by the commission, in partnership with the Independent Liquor

and Gaming Authority, the Australian Criminal Intelligence Commission and AUSTRAC.

Laws make it difficult for pubs and clubs to exclude people they think may be laundering money through their poker machines.

The issue paper stated how the inquiry had received information suggesting that some venues found it difficult to exclude patrons from their premises, given the laws governing “tipping off” someone suspected of money laundering.

Under existing laws, licensees are prohibited from tipping off persons they intend reporting to AUSTRAC, but at the same time, members of licensed clubs have a right to be told why they are being excluded from a club, complicating the matter.

It said the complication was stopping some venues from removing a person for suspected money laundering amid concerns they could breach the tipping off laws.

“If the club or hotel asked the person to leave the venue and/or banned them from re-entering, any explanation given for that decision should be carefully worded to avoid breaching the tipping off provision,” it said.

“Registered clubs have raised this as a particular issue, as the majority of people attending

these venues are members of the club and, under the club constitutions, have a right to

be provided with reasons for, and to appeal, the revocation of their membership.

“The inquiry understands that the tension between exclusion and the anti-tipping off offence

has led some venues to decide to not remove or ban persons for fear that doing so may

constitute a criminal offence.”

Mr Barnes said the law required the commission to conduct the inquiry in camera and the investigation would be greatly assisted if people with special knowledge and interest in the issue made a submission.

The deadline for submissions is August 19.

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