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Australia’s financial crime watchdog has launched legal action against Ladbrokes owner Entain, alleging the FTSE 100 gambling company breached the country’s anti-money laundering rules.
The Australian Transaction Reports and Analysis Centre (Austrac) said on Monday that Entain failed to identify and assess anti-money laundering risks and was in “serious and systemic non-compliance” with the rules.
The action follows an investigation opened in 2022 and is the first time the regulator has taken “civil penalty proceedings” against an online betting company, said Austrac.
The regulator alleged that Entain did not have appropriate controls to confirm the identity of customers and the source of their money.
The FTSE 100 group created risks that persons unknown to the company could access and use its betting platform including through third-party providers, added the regulator.
Entain said it had co-operated with Austrac throughout its investigation and that “whilst the outcome of the civil penalty proceedings against Entain Australia is uncertain, it may result in a penalty being levied which could be potentially material”.
The company said the proceedings “may take some time”.
