Entain Under Investigation in Australia for AML/CTF Issues  

Australia’s financial crime regulator, AUSTRAC, is pursuing legal action against Entain’s Australian division. The case centers on supposed violations of anti-money laundering and counter-terrorism financing laws by Entain’s online betting sites, such as Ladbrokes and other related brands. AUSTRAC, which began its investigation two years ago, asserts that Entain did not uphold an adequate AML/CTF program, making its round-the-clock betting operations and third-party cash deposit methods vulnerable to abuse. The regulator highlighted inadequate supervision by Entain’s management, resulting in issues with identity verification and tracking the origin of funds, especially concerning 17 high-risk customers. In certain instances, pseudonyms were reportedly utilized to conceal customer identities, which opened the door for illegal activities. Furthermore, the regulator highlighted that these shortcomings point to a larger concern, indicating that Entain has not effectively identified and managed risks associated with online gambling, making the platform susceptible to criminal exploitation. Breaching Australia’s AML/CTF laws can lead to penalties of up to A$22.2 million for each violation, as specified in the legislation. The Federal Court of Australia will decide on the ultimate penalties. AUSTRAC stated: The online betting industry, along with all other businesses governed by AUSTRAC, must regard their AML/CTF responsibilities with seriousness. This involves making sure they have proper methods to identify their customers, even if they depend on third parties to handle transactions. Entain has recognized AUSTRAC’s legal action and stated that it will fully cooperate with the investigation. The company highlighted its continued work to enhance its anti-money laundering and counter-terrorism financing (AML/CTF) systems, in line with its previously announced compliance strategy. Gavin Isaacs, the CEO of Entain, mentioned: We have worked closely with AUSTRAC during its investigation and are making additional improvements to Entain Australia’s AML and CTF compliance measures.