Entain Under Investigation in Australia for AML/CTF Issues

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AUSTRAC, Australia’s financial crime regulator, takes legal action against Entain’s Australian branch.

The case focuses on alleged breaches of AML/CTF laws by Entain’s online betting platforms, including Ladbrokes and other associated brands.

AUSTRAC, which launched its investigation two years ago, claims Entain failed to maintain a proper AML/CTF program, leaving its 24/7 betting operations and third-party cash deposit systems exposed to misuse. The regulator also pointed to weak oversight from Entain’s management, which led to gaps in identity verification and tracking the source of funds, particularly for 17 high-risk customers. In some cases, pseudonyms were allegedly used to hide customer identities, creating opportunities for illegal activities.

Moreover, the regulator emphasized that these failures reflect a broader issue, with Entain falling short in identifying and managing risks tied to online gambling, leaving the platform vulnerable to criminal exploitation.

Violating Australia’s AML/CTF laws can result in fines of up to A$22.2 million per breach, as outlined in the legislation. The Federal Court of Australia will determine the final penalties.

AUSTRAC mentioned:

The online betting sector, and all other businesses regulated by AUSTRAC, must take their AML/CTF obligations seriously. This includes ensuring they have appropriate procedures to know who their customer is, even when they rely on third parties to process transactions.

Entain has acknowledged AUSTRAC’s legal action and confirmed its full cooperation with the investigation. The company emphasized ongoing efforts to strengthen its anti-money laundering and counter-terrorism financing (AML/CTF) systems, aligning with its previously communicated compliance plan.

Gavin Isaacs, the CEO of Entain, stated:

We have co-operated fully with AUSTRAC throughout its investigation and we are implementing further enhancements to Entain Australia’s AML and CTF compliance arrangements

This case in Australia adds to Entain’s mounting regulatory challenges. Last year, the company agreed to a £585 million settlement with the UK’s HM Revenue & Customs (HMRC) to resolve bribery allegations tied to its former operations in Turkey. This settlement, related to GVC Holdings’ management of the Sportingbet brand in Turkey from 2011 to 2017, helped Entain avoid prosecution and protect its gaming licenses.

HMRC’s investigation revealed significant compliance failures, including bribery and misconduct, during GVC’s Turkish operations. While the settlement dealt a considerable financial setback, it enabled Entain to move past a prolonged reputational concern.