Entain Australia has filed its defence in response to AUSTRAC’s amended statement of claim in the Federal Court of Australia.
The Ladbrokes operator acknowledged there were certain deficiencies in its previous anti-money laundering and counter-terrorism financing compliance programme during the period between December 2018 and August 2024.
However, Entain disputed a number of the allegations and interpretations made by AUSTRAC in the case.
Andrew Vouris, chief executive of Entain Australia & New Zealand, said: “We sincerely regret that our old programme didn’t meet expectations. We followed expert advice at the time but, looking back, we recognise the old programme missed the mark.”
It follows the Australian financial intelligence agency launching legal proceedings against the business in December 2024 over potential breaches in its AML/CTF programmes following a two-year investigation.
Entain points to compliance transformation
Entain noted that over the last two years, it has undertaken a substantial transformation of its approach to compliance and strengthened its programme.
The changes included a tenfold increase in AML/CTF staffing and tens of millions of dollars invested in new systems and technology.
The operator has closed higher risk channels, including all cash payment channels, which previously accounted for less than 2% of deposits.
It has also closed all 17 customer accounts in question, some as far back as 2020, prior to legal proceedings.
Additional measures include new governance, controls, processes and oversight of risks, as well as a new leadership team committed to a compliance-first culture.
Vouris added: “We’ve acknowledged our shortcomings, taken responsibility, and spent the last two years learning from them and fixing them.
“Entain has fundamentally transformed its approach to compliance and now operates a market-leading programme, underpinned by a compliance-first culture – to win, but not at all costs.”
The business said it has fully cooperated with AUSTRAC and continues to engage constructively and in good faith.
Stella David, CEO of the global business, told analysts in the company’s Q2 earnings call Entain had set aside A$100m (€56m) to cover a potential penalty from the AUSTRAC investigation.
