Two high profile online gambling companies suspected of breaching anti-money laundering and anti-terrorism financing laws are being audited.

Australia’s financial intelligence agency has appointed external auditors to Sportsbet and Bet365, telling them to report back within 180 days.

The Australian Transaction Reports and Analysis Centre told both companies in an advice notice it had “reasonable grounds” to suspect they may have contravened or are contravening the law.

“Money laundering feeds organised crime and all the harm that comes with it,” AUSTRAC CEO Nicole Rose said on Thursday.

Sportsbet and Bet365 are among the biggest operators in the bookmaking sector.

“AUSTRAC is putting the whole industry on notice to lift their game,” Ms Rose said.

The audit will be at Sportsbet’s and Bet365’s expense.

It comes after AUSTRAC revealed in September that the group behind betting agency Ladbrokes was being investigated under anti-money laundering and counter-terrorism laws.

The investigation is tasked with determining if Entain Group is meeting its obligations under laws designed to stop the financing of serious and organised crime.

Along with Ladbrokes, Entain owns Australian betting site Neds, European book bwin and American sports and casino betting operation BetMGM.

Australians lose around $25 billion on legal forms of gambling a year, according to Australian Institute of Health and Welfare data.