The Australian Transaction Reports and Analysis Centre (AUSTRAC) has filed a civil action against the Australian subsidiary of global gambling-industry giant Entain over alleged 'serious and systemic non-compliance' with the country's anti-money laundering and counter-terrorism financing (AML/CTF) laws.
In the action against Entain Group Pty Ltd, which was announced on Monday, AUSTRAC outlined several alleged failures in the company's approach to handling AML issues, including a lack of proper assessment of AML- and CTF-associated risks.
Among the issues AUSTRAC raised was the granting of pseudonymous status to certain accounts on Entain-owned sites that serve the Aussie online gaming market, notably Ladbrokes and Neds. According to AUSTRAC, the Entain Group's Australian sites did not conduct appropriate checks on 17 'higher risk customers' and deliberately obscured the real identities of at least some of those customers on its own systems, declaring that it was done to protect the customers' privacy.
AUSTRAC also alleged that Entain allowed third parties to accept cash and other deposits on its behalf, to be credited into online wagering accounts, 'in ways that could obscure the proceeds of crime.'
First AUSTRAC action against online-only operator
The civil action continues a crackdown by Aussie regulators in recent years over various illicit or circumventing practices, although this is the country's first major AML action involving an online operator, as neither Ladbrokes nor Teds has land-based outlets in the country. "This is the first time AUSTRAC has brought civil penalty proceedings against businesses operating in the online betting sector, and the Australian arm of Entain is part of one of the world's largest sports betting and gaming groups,” said AUSTRAC CEO Brendan Thomas.
“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," Thomas added.
AUSTRAC has previously been involved in regulatory crackdowns involving several of Australia's largest brick-and-mortar casino operators, including Crown Melbourne, Star Entertainment Group, SkyCity, and other concerns.
Entain's global reach includes several of the world's largest and most famous gambling brands. Besides Ladbrokes and Neds, Entain also owns and operates Eurobet, Crystalbet, Coral, bwin, Sportingbet, Betboo, Gala Bingo, Gala Casino, Gioco Digitale, PartyCasino, partypoker, Foxy Bingo, and several other brands.
