Nick Xenophon (SA, Independent) Share this | Hansard source

Madam, Acting Chair, somehow I do not think I have the numbers for this amendment! The sheer arithmetic tells me it is the case, but I want to put some things on the record. I do appreciate the way that both the government and the opposition have given this some consideration. It has been at late notice, but I will put this up as a private senator's bill. It is something that is worth investigating.

I want to put on record a couple of things about this issue. The report that was in the Sydney Morning Herald on 21 October 2010 headed 'Dirty laundry' sets out in considerable detail what goes on, according to this investigative report, in the poker machine industry. In response to Senator Sherry's comments, I want to make it clear that I do not say that Anthony Ball, who I have had many dealings with—I think they have been involuntary for both of us, given our debate on the poker machine issue—would necessarily support this move, but I do say that I think I know him well enough to say that he would be horrified to have any organised crime involvement, through money laundering, in the poker machine industry. I say that as a compliment to Mr Ball; I believe he is genuinely concerned about organised criminal elements. It is a positive reflection on Mr Ball, rather than anything else.

Money laundering through poker machines is big business in hotels and clubs. It is a real issue, and what has been described in this investigative piece in the Sydney Morning Herald is that, after they enter a hotel, the launderers do a reconnaissance of the gambling venue to check if there are any prospective muggers. A money belt would be an obvious choice to carry the cash, but they shun those. They wear a jacket rather than carry a bag. Professional launderers are almost exclusively male, and they do this as a full-time job. During the initial visit they will play a small amount of cash through a machine and then reserve it, going back to their car to collect up to $10,000 in $100 notes. They often make several trips to their car to collect more cash and then return to the same machine. Unlike other automated cash machines, such as ticket dispensers, poker machines are not fussy about gamb­lers, who can clean $10,000 in just minutes by feeding $100 notes before the reel starts spinning, just a few seconds apart. The gambler then gets a clean cheque from the hotel, and that is the way that the money laundering takes place.

The report states that as much as $2 million passes through the poker machines in a week at each of the state's top poker machine venues. It produces a net profit of $160,000 a week, or $8.3 million a year. I think they are talking about some specific venues. Money launderers do not even need to play the machines; they just feed in the dirty cash and then press the 'win' button and receive a cheque. Some hoteliers say that some public sector in Sydney are well known to criminals as local laundries. An estimated $2 billion is laundered on an annual basis, and this is a large slice of the $14 billion fed through the nation's poker machines in pubs and clubs each year. This method is favoured because it is a relatively quick and easy way to convert funds, and we need to bear this in mind. The Australian Transaction Reports and Analysis Centre has been sending out formal questionnaires for months, asking hoteliers to declare who their big winners are, and, as I understand it, they are not happy with the response that they have received. AUSTRAC is working with the Australian Crime Commission, but no hotels or clubs have been prosecuted, despite the fact that there are harsh penalties including jail and fines of $1 million for each offence.

I think money laundering using poker machines is an issue that needs to be dealt with. I appreciate that this amendment was moved at short notice, but there will be a private senator's bill to deal specifically with the issue of money laundering. This is a significant issue. Mr Ball and others can give their evidence, as is appropriate, at such a Senate committee, and I hope that the Senate will not stand in the way of such a bill being considered appropriately. Money laundering using poker machines is the elephant in the room for many in the poker machine industry and is an issue that has not been approp­riately addressed. I am grateful to the investigative journalists who have reported on this issue and grateful to experts such as Dr Charles Livingstone from Monash University, who has raised this issue previously. I would like to think that this parliament will have an opportunity to deal with the issue of money laundering sooner rather than later, and I foreshadow that I will be moving a private senator's bill. I accept that it is lost on this occasion, but, because of the short notice they were given, I criticise neither the government nor the opposition. I hope it is understood that this is an issue that will not go away. I hope that this is considered fully in the coming months.

Question negatived.

Bills, as amended, agreed to.

Bills reported with amendments; report adopted.