AUSTRAC, Australia’s financial crime regulator, has narrowed its claims against Entain as its investigation into AML failures continues.
An investigation was launched into Entain’s Australian subsidiaries, namely Ladbrokes and Neds, in December 2024 related the group’s exposure to money laundering liabilities and fraud by criminal accounts.
AUSTRAC alleges that the company fell short in its AML procedures, allowing 17 high-risk customers to spend AUS $152m (£74.2m) without doing proper checks.
In particular, Entain is accused of allowing a player with significant links to drug trafficking to launder more than AUS $20m through its operations.
Narrowing focus
An amended statement of claim filed by AUSTRAC removed claims that Entain breached its duties as a remittance provider under AML and counter-terrorism financing laws by failing to alert authorities of suspicious payments in and out of the customers accounts.
Entain argues that it is not a remittance provider, a service that facilitates money transfers.
The decision by AUSTRAC is perhaps understandable given AUSTRAC’s policy related to companies that fall under the guise of a remittance provider.
The AUSTRAC website states that some entities, such as online gambling providers, may send funds overseas on behalf of its customers, but it is secondary to their core business.
In its view, the fund transfers “do not constitute a designated remittance arrangement”.
Entain not out of hot water
Despite amending the claim, AUSTRAC is still pushing forward with its claim that Entain breached its duties as a gambling service.
These include failing to intervene when a player known to have significant links to drug trafficking was allowed to wager in excess of $1m over a year-long period.
In April, Entain’s CEO, Stella David, told iGaming Expert: “We are taking these allegations extremely seriously and continue to fully cooperate with Austrac. We are committed to keeping financial crime out of gambling and continue to play our part in supporting a well-regulated and compliant sector for our customers, stakeholders and the wider community.”
Entain’s previous CEO, Gavin Isaacs, who abruptly left his role in February 2025, also previously stated that the group is implementing further enhancements to Entain Australia’s AML and CTF compliance arrangements.
Entain and AUSTRAC remain in mediation, and the group has set aside £51m to deal with the matter, although Entain claims the amount is related to accounting and does not reflect a potential penalty.
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