Entain, a leading gambling operator, is currently under investigation by the Australian Transaction Reports and Analysis Centre (Austrac) regarding its compliance with the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act in Australia. Austrac’s investigation follows an extensive supervisory campaign into Entain’s activities and will assess the operator’s adherence to AML and CTF obligations.
The investigation emphasizes the importance of businesses, including those in the gambling sector, complying with AML/CTF requirements to combat serious crime. Austrac also mentioned the possibility of further investigations into other bookmakers in Australia as a result of this probe.
Austrac Investigation and Compliance Obligations:
Austrac stated that its investigation into Entain aims to determine whether the operator has adequately fulfilled its obligations under Australia’s AML/CTF Act. Compliance with these obligations is crucial for reporting entities, including gambling businesses, to identify, assess, and manage the risks of money laundering and terrorism financing. Nicole Rose, the CEO of Austrac, emphasized that dedicating adequate resources and developing robust processes is essential for businesses to fulfill their AML/CTF obligations effectively. The investigation’s findings will shed light on Entain’s compliance status and may have implications for its operations in Australia.
Potential Impact on Other Bookmakers:
Austrac’s announcement also highlighted the possibility of further investigations into other bookmakers in Australia. This suggests that the probe into Entain is part of a broader effort to ensure compliance within the gambling industry. The investigation serves as a reminder to all gambling operators in Australia to prioritize AML and CTF measures and actively work towards combating financial crime. The outcome of the investigation could potentially influence regulatory actions and industry-wide initiatives aimed at strengthening AML/CTF frameworks.
Recent GB Gambling Commission Fine:
Less than a month ago, Entain faced a £17.0 million (€20.3 million/$20.6 million) fine from the UK Gambling Commission (UKGC) due to failures related to social responsibility and AML measures. The fine was divided, with £14.0 million targeted at LC International Limited, which operates Entain’s online gaming brands such as Coral.co.uk and Foxybingo.com. The remaining £3.0 million was levied against Ladbroke’s Betting & Gaming Limited, Entain’s chain of retail bookmakers. This recent penalty from the UKGC adds to the regulatory challenges faced by Entain and underscores the need for stringent compliance measures across jurisdictions.
Entain’s ongoing investigation by Austrac highlights the significance of compliance with AML/CTF obligations within the gambling industry. The outcome of the investigation will determine whether Entain has sufficiently adhered to Australia’s AML/CTF Act. The possibility of further investigations into other bookmakers underscores the regulatory focus on ensuring robust AML/CTF frameworks in the gambling sector. Entain’s recent fine from the UKGC further amplifies the importance of proactive social responsibility and AML measures. As the investigation unfolds, Entain and other operators must prioritize compliance efforts to combat financial crime and maintain regulatory integrity.