Entain sued over 'serious and systematic' anti-money laundering failures
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Australian authorities have brought legal action against Entain over claims the Ladbrokes owner breached anti-money laundering rules. The Australian Transaction Reports and Analysis Centre (AUSTRAC) has accused the FTSE 100 company of 'serious and systemic non-compliance' with the country's anti-money laundering and counter-terrorism financing regulations.
It is the first time Australia's financial intelligence agency has begun civil proceedings against an online gambling business. AUSTRAC began a probe into Entain, which also owns Coral and Bwin, in September 2022 following a supervisory campaign covering the corporate bookmaking industry.
Among its claims, AUSTRAC says Entain lacked 'appropriate controls' to confirm the identity of customers and the source of their money. It also accuses the firm of not making sufficient checks on 17 'higher-risk' customers and even intentionally hiding the identity of some to 'protect their privacy'.
Sued: Australian authorities have brought legal action against Entain, claiming the Ladbrokes owner breached anti-money laundering laws. Brendan Thomas, chief executive of AUSTRAC, alleged that Entain 'did not develop and maintain a compliant anti-money laundering program and failed to identify and assess the risks it faced'.
He added: 'We are alleging this left the company at serious risk of criminal exploitation.'. Entain told investors that it was fully cooperating with AUSTRAC and expects to complete a programme to improve its anti-money laundering and counter-terrorist financing systems and processes in June 2025.
