https://thepaypers.com/digital-identity-security-online-fraud/austrac-sues-ladbrokes-owner-over-aml-breaches--1271517

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has launched legal action against Ladbrokes owner Entain over anti-money laundering breaches.

Following this announcement, the Australian Transaction Reports and Analysis Centre (AUSTRAC) mentioned that the FTSE 100 group failed to identify and assess anti-money laundering risks. This initiative also represents the first time the regulator has brought civil penalty proceedings against an online betting company.

The regulator also mentioned that the company, which operates as Neds and Ladbrokes in the region of Australia, created risks that allowed individuals unknown to the company to gain access to and use its betting platform. This included third-party providers and businesses as well.

According to officials of the company, Entain did not have appropriate controls to confirm the identity of customers who were making these deposits and the source of this money, following a probe launched in 2022. At the same time, shares in Entain were down 3% in early trading in London.

AUSTRAC added that the betting company also failed to conduct appropriate checks on 17 high-risk clients while choosing not to deal with the risk that its sites could be exploited to spend the proceeds of crime in those cases. It also alleged that Entain deliberately obscured the identity of some high-risk customers on its own systems, through the excuse of protecting their privacy.

Entain aims to co-operate fully with the Australian Transaction Reports and Analysis Centre through its investigation, while also warning that the outcome of the legal action might result in a penalty that could be potentially material. The Federal Court of Australia is set to determine whether Entain contravened laws related to money laundering and risk and what penalties should be later imposed.