Judge faults expert evidence in Entain AUSTRAC money laundering case
Federal Court Justice Cameron Moore has criticised expert witnesses on both sides ahead of next month's Entain v AUSTRAC trial, days after fining Star Entertainment AU$260m.
Federal Court Justice Cameron Moore has raised concerns over the quality of expert evidence submitted in the case between Entain and Australia's financial crime regulator AUSTRAC, according to the Australian Financial Review.
The criticism comes in the run-up to a trial scheduled for next month, in which AUSTRAC alleges that Entain allowed 17 high-risk customers to spend more than $152m without adequate background checks.
Entain, the UK-headquartered and London-listed operator behind the Ladbrokes and Neds brands in Australia, has reportedly introduced new anti-money laundering and counter-terrorism financing measures since the allegations emerged.
Justice Moore said AUSTRAC's expert had not demonstrated genuine expertise, instead examining Entain's internal risk register and flagging which topics were absent from it before concluding that the company's assessment was unreasonable.
AUSTRAC responded by arguing that Entain's own expert had taken the same approach, relying heavily on the content and omissions of a single document, a point Justice Moore said he agreed with.
The judge's comments follow his ruling earlier this week against Star Entertainment, in which he ordered the Bally's-owned casino group to pay $260m for breaches of anti-money laundering and counter-terrorism financing law.
Bally's told SBC News it takes "the importance of these historical matters and the regulatory obligations of casino operators very seriously", adding that it is "encouraged by the significant progress The Star has made under its new leadership and remediation program, supported by Bally's operational and regulatory compliance expertise".
A ruling against Entain next month would mark a shift in a market where operators have, according to SBC News, largely avoided consequences for regulatory breaches in recent years.
Consumer advocate Adam Glezer reported in August that the Australian Communications and Media Authority had issued only two financial penalties to operators found in breach of the BetStop self-exclusion scheme.
Glezer told SBC News that "at least a dozen distinct wagering operators" had been found in breach since BetStop's launch.
The scrutiny around gambling regulation in Australia has intensified in recent months, prompting Prime Minister Anthony Albanese to introduce tighter rules for operators.
A package of marketing restrictions brought in under Albanese's government was criticised by political opponents as too lenient, with some calling instead for a complete ban on gambling advertising.
The lack of a dedicated national gambling regulator remains a separate point of contention in the debate over oversight of the sector.
Whether the Entain case against AUSTRAC ends with a result similar to the Star Entertainment judgment should become clearer once the trial opens next month.