Entain, a leading company in gambling and entertainment, is facing new allegations of accepting approximately AU$152 million in bets from 17 high-risk clients. These claims come according to federal court documents referenced by The Guardian and detailed in a new regulatory action released on Monday.
Entain comes under fire in Australia over CTF/AML breaches
The company is encountering difficulties in Australia as Austrac, the financial intelligence watchdog, initiated civil penalty proceedings against it on Monday. The company is accused of deliberately concealing the identities of high-risk players and failing to address what the regulator describes as criminal exploitation. Entain, which operates the sports betting brands Neds and Ladbrokes in Australia, faces numerous accusations detailed on the regulator’s website. It is alleged that the company's board and senior management did not adequately oversee its Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) program, resulting in the failure to detect a large volume of bets placed by high-risk players. The company is further accused of running its operations 24/7 and allowing individuals unknown to the company, including through third-party providers, to access its betting platform. Austrac has further elaborated on this by stating that third parties, including businesses and individuals, were permitted to accept cash and make deposits on behalf of Entain, increasing the risk of obscuring criminal proceeds. Additionally, the regulator highlighted that Entain lacked adequate controls to verify customer identities and confirm the sources of money deposited into certain accounts. Seventeen high-risk customers were specifically mentioned by the regulator in its allegations against the company.
Court to decide on Entain’s alleged breaches of law
Austrac CEO Brendan Thomas commented on the case, stating that Austrac's actions were a response to the various failures identified by the regulator. Austrac's proceedings claim that Entain failed to develop and maintain a compliant anti-money laundering program and did not identify or assess the risks it was exposed to. We allege that this left the company significantly vulnerable to criminal exploitation, Thomas explained. He reminded the online betting industry and all businesses under Austrac's regulatory scope that they must adhere to anti-money laundering and counter-terrorism financing (AML/CTF) standards and take their obligations seriously. Austrac has initiated civil penalty proceedings in the Federal Court, which will decide whether Entain violated any laws. The regulator stated it would not comment further while the case is before the court.
