Entain faces Australian probe over potential historical AML failings
London-listed operator in the crosshairs of AUSTRAC as previous filings against land-based casinos threaten multi-million-dollar fines
Entain is being investigated by the Australian Transaction Reports and Analysis Centre (AUSTRAC) over potential failures regarding its anti-money laundering (AML) and counter-terrorism (CTF) financing policies.
The investigation is set to explore potential historical failings at Entain Australia from July 2016 until June 2020.
Entain operates the Ladbrokes, Neds and Sportingbet brands in Australia.
Nicole Rose, AUSTRAC CEO, said companies operating in Australia needed to take AML and CTF legislation seriously and deploy adequate resources to tackling said issues.
Rose said: “Reporting entities have a responsibility to ensure they identify, assess and manage risks of money laundering and terrorism financing, develop adequate processes and devote the necessary resources to comply with their AML/CTF obligations.”
AUSTRAC has a series of enforcement powers available and said it would “not hesitate to take action where suspected non-compliance is identified”.
These enforcement powers could result in serious fines for the London-listed firm.
In March, AUSTRAC filed against Australian casinos Crown Melbourne and Crown Perth over AML and CTF failings.
AUSTRAC found Crown Melbourne failed to carry out appropriate due diligence on customers, contravening s36 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 on 382 occasions.
Crown Perth contravened s36 of the Act on 165 occasions.
AUSTRAC said each contravention could attract a maximum civil penalty of between A$18m and A$22.2m.
An Entain spokesperson said: “Entain Australia, part of the global sports betting, gaming and interactive entertainment Entain Group, can confirm that it has been notified by the Australian Transaction Reports and Analysis Centre that it has conducted a standard assessment of Entain Australia’s historical anti-money laundering and counter-terrorism financing policies and procedures.
“Entain Australia notes AUSTRAC’s decision and is co-operating with the investigation which relates to the historical period from July 2016 to June 2020,” the spokesperson added.
Last month, Entain agreed to pay the UK Gambling Commission £17m after the gambling regulator found failings in the operator’s social responsibility and AML policies.