The 36 year old was arrested by the Independent Commission Against Corruption (ICAC) for allegedly pocketing $205,000 in the deal.
The department confirmed the charges but refused to give any more details.
Munce was among seven men arrested in connection with the scam. Four of the others are allegedly illegal bookmakers while the other two were said to act as middle men.
The Australian was arrested at Hong Kong airport as he attempted to board a flight for his homeland.
He has been bailed and ordered to remain in the island territory.
Munce was suspended for five weeks in January for failing to secure the best position for his horse First Knight.