AUSTRAC has taken legal action against Entain, operator of Ladbrokes and Neds, for alleged non-compliance with Australian money laundering laws. AUSTRAC (the Australian Transaction Reports and Analysis Centre) is the Australian Government agency responsible for detecting, deterring and disrupting criminal abuse of the financial system. This marks the first time AUSTRAC has brought such proceedings against an online betting company.

  • AUSTRAC’s claims focus on systemic failures in Entain’s anti-money laundering (AML) practices. The company allegedly lacked a compliant program to identify and address risks. This, according to AUSTRAC, left Entain vulnerable to criminal exploitation.
  • Entain’s board and senior management lacked oversight of AML obligations. The failure to assess and address money laundering risks left gaps in their operations. AUSTRAC claims these vulnerabilities created opportunities for criminal activities.
  • Third-party deposits and cash transactions raised concerns about the transparency of funds. AUSTRAC noted instances where funds could not be traced, increasing the risk of money laundering. This included cash deposits handled by individuals and businesses on Entain’s behalf.
  • Entain reportedly failed to verify customer identities in certain cases. This included not checking the source of funds deposited into accounts. Such practices undermine safeguards against financial crimes.
  • Higher-risk customers were not appropriately monitored, according to AUSTRAC. The allegations suggest Entain knowingly obscured customer identities, potentially shielding criminal activity. These practices included the use of pseudonyms to bypass scrutiny.
  • This legal action follows recent enforcement actions in Australia’s gambling sector. AUSTRAC has taken steps against major entities, including Crown and SkyCity, for AML violations. These cases highlight ongoing vulnerabilities in the industry.
  • The Federal Court will now decide if Entain breached the law and what penalties may apply. AUSTRAC will not comment further while proceedings are underway. Non-confidential court documents will be made available online soon.