AUSTRAC Sues Entain Over AML Violations

Australia's financial crime regulator, AUSTRAC, has initiated civil penalty proceedings against Entain Group for alleged violations of anti-money laundering (AML) and counter-terrorism financing (CTF) laws. The regulator claims that Entain's management failed to establish a compliant AML program, leading to 'systemic failures' that left the company vulnerable to criminal exploitation through its online betting platforms. Specifically, AUSTRAC identified deficiencies in customer identity verification and checks on 17 high-risk customers, some of whom were allegedly obscured using pseudonyms. This is the first such legal action against an online gambling company in Australia, and penalties could be substantial. Entain has expressed its commitment to improving compliance measures and has cooperated with the investigation since it began in September 2022. CEO Gavin Isaacs acknowledged the possibility of significant fines but emphasized the company's proactive steps to enhance its compliance framework.