Australia’s anti-money laundering (AML) and counter-terrorist financing (CTF) regulator has commenced civil proceedings against UK gambling giant Entain PLC (LSE:LON:ENT).
The Australian Transaction (JO:TCPJ) Reports and Analysis Centre (AUSTRAC) is accusing the Ladbrokes and BetMGM owner of “systemic failures” in its approach to regulatory compliance.
Entain allegedly lacked the proper ability to identify and block criminals from using its various online gaming websites.
AUSTRAC has identified seventeen ‘higher-risk’ customers as users of the website. Entain allegedly used pseudonyms to protect the identity of these higher-risk customers.
It is the first time AUSTRAC has brought civil penalty proceedings against an online gambling company.
Gavin Isaacs, chief executive of Entain, said the company has fully co-operated with AUSTRAC and is beefing up its compliance arrangements, though there are further improvements to make.
“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," he said.
Entain warned the potential penalties arising from the civil proceedings, as determined by the Federal Court of Australia, could be “material”.