The Australian Financial Transactions and Analysis Center (Austrac) has initiated a “law enforcement inquiry” into Entain due to worries about anti-money laundering (AML) and counter-terrorism financing (CTF), and has suggested that other operators may be examined.
Austrac stated in a press release that the investigation follows “broad supervision” of Entain’s operations. It will evaluate whether Entain has adequately adhered to its responsibilities under Australia’s AML/CTF Act.
Austrac’s chief executive, Nicole Rose, stated that all businesses, including those in the gambling sector, must comply with AML and CTF regulations to combat serious criminal activity.
“Reporting entities have a duty to ensure they identify, assess and manage the risks of money laundering and terrorism financing, develop appropriate procedures and dedicate the necessary resources to fulfill their AML/CTF obligations,” Rose said.
Austrac also indicated that the investigation into Entain could result in further inquiries into other gambling companies in Australia.
It added that it could not provide further details on the matter at this time.
Less than a month ago, Entain was penalized £17 million (€20.3 million/$20 million).
The United Kingdom Gambling Commission (UKGC) has levied a substantial £17 million fine on Entain, citing shortcomings in the company’s commitment to social responsibility and its anti-money laundering procedures.
A significant portion of the penalty, £14 million, is directed towards LC International Limited, the entity responsible for Entain’s online gambling brands, including Coral.co.uk and Foxybingo.com.
The remaining £3 million is allocated to Ladbroke’s Betting & Gaming Limited, Entain’s retail betting network.
Subscribe to the iGaming news newsletter.