Entain, a prominent player in the gaming industry, faces serious allegations from the Australian Transaction Reports and Analysis Centre (AUSTRAC) regarding failure to report accounts linked to criminal activities across its various brands. This investigation sheds light on suspicious transactions involving millions of dollars between 2019 and 2022, raising concerns about the company’s compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.
In December, AUSTRAC formally initiated legal action against Entain, claiming that the company exhibited “serious and systematic” non-compliance in its reporting obligations. This investigation has prompted Entain to acknowledge the potential for substantial penalties as the case unfolds.
The recently released court documents reveal alarming patterns of AML failures concerning several accounts tied to Entain’s operations. Detailed findings indicate that between 2019 and 2022, significant transactions went unreported, casting doubt on the company’s internal controls and monitoring systems. Notably, these accusations also include instances where Entain failed to disclose a business partner’s extensive criminal record, which encompassed serious offenses, including drug trafficking and weapons-related crimes.
One striking detail from the 640-page filing involves unusually large transactions: one flagged account recorded a staggering turnover of over $57.3 million in just a couple of years. Another account on Entain’s Ned platform raised eyebrows for its financial activity, showing deposits and withdrawals of $1.8 million, despite being associated with expired debit and credit cards—something AUSTRAC claims Entain was cognizant of.
Throughout 2021, another account holder blatantly evaded requests for source of wealth information, demonstrating a possible disregard for compliance protocols. Authorities have highlighted that one individual tied to these accounts faced criminal charges for offenses such as extortion and possession of illegal substances.
In a statement released on March 31, Entain recognized the validity of AUSTRAC’s claims and pledged to evaluate the situation thoroughly. The company also announced its commitment to enhancing its AML and CTF procedures, which began following the initiation of the investigation in December 2022.
Looking ahead, mediation between AUSTRAC and Entain is mandated before August 4. If the matter remains unresolved, the gaming operator will be required to submit its defense by September 12. This case underscores the ongoing scrutiny of gaming companies’ compliance with financial regulations, reflecting broader concerns about illicit activities in the industry and the measures needed to combat them.