AUSTRAC claim against Entain highlights criminal player activity
The case against Entain was submitted by AUSTRAC in December, after it accused the operator of “serious and systematic” non-compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) laws.
At the time, Entain acknowledged it could face a material penalty as a result of the investigation.
Court documents filed by AUSTRAC with the Federal Court of Australia, New South Wales Registry, flagged numerous AML failings relating to four accounts across Entain’s brands. These were made public on 31 March.
In 2019, the operator did not disclose one affiliate partner’s “serious criminal history” which included a history of drug dealing and gun crime.
The 640-page court filing details every instance Entain failed to flag or report a money laundering or terrorist financing risk during the reported period.
Unusually large deposits and withdrawals and failure to report source of wealth
A number of multi-million-dollar deposits and withdrawals were detailed in the filing. One of the four flagged accounts had a lifetime turnover of over $57.3 million within the space of a couple of years.
Another player account, on Entain’s Ned brand, was flagged for depositing and withdrawing unusually large amounts, as up to $1.8 million was deposited between November 2017 and April 2019. Of that, $1.2 million was withdrawn during the period.
The same account was also linked to multiple expired debit and credit cards and AUSTRAC has said Entain was aware of this.
On another occasion, one of the four flagged accounts refused to provide source of wealth information over a two-month period in 2021.
In September and December 2022, a gambling integrity body flagged one of the suspicious accounts’ betting activity over a nine-month period. Then in May 2023, a law enforcement agency made an inquiry about one of the accounts’ betting activity.
One of the account holders was also reported in the media to have been charged by the police with one count each of extortion, possessing dangerous drugs and possessing a knife in a public place.
In a statement on 31 March, Entain said it acknowledged the allegations made and would take some time to review AUSTRAC’s statement of claim.
What’s next for AUSTRAC’s case against Entain?
The operator said it had cooperated fully with AUSTRAC throughout the investigation and, in December 2022, commenced a programme of further enhancements to its AML and CTF financing systems and processes.
The two parties are required to attend a mediation before 4 August. If the matter is not resolved by then, Entain will need to file its defence by 12 September.