Poland: STS Pursues Appeal over Ministry of Finance AML Fine

In a deal dating back to last summer, the leading gaming and entertainment group, Entain, announced the acquisition of STS, a leading bookmaker in Poland. The acquisition, valued at £750 million ($955.6 million), took STS private, although the company was previously traded on the Warsaw Stock Exchange.

In January 2022, STS received a fine by the Ministry of Finance in Poland over alleged breaches of the country’s anti-money laundering (AML) and counter terrorism financing (CTF) laws. Although the operator paid the fine and was later acquired by Entain, it continues to dispute the penalty.

The Provincial Administrative Court dismissed the legal complaint filed by STS over the monetary penalty from the Ministry of Finance. However, the company remained true to its position after submitting a cassation appeal, challenging once again the fine it received in the European country.

A cassation appeal means that the operator addresses the legal matter from a higher-instance court. Such appeals are possible in different countries across the globe. What’s different with cassation appeals is that the court would only interpret the relevant laws rather than reviewing the facts of the particular case.

The Ministry of Finance Describes the Alleged Breaches

The fine that affected STS was PLN 2.95 million ($751.1 million) and the company disclosed the monetary penalty under its obligations while it was still listed on the Warsaw Stock Exchange in 2022.

This week, the Polish Ministry of Finance released details regarding the deficiencies the company is accused of. The list of alleged breaches of the local laws includes insufficient risk assessment efforts, as well as deficiencies in internal controls and procedures related to money laundering.

Moreover, STS allegedly failed to notify the General Inspector of Financial Information. The famous bookmaker also didn’t appoint an anti-money laundering officer, something that is a part of the existing laws in the country.

The scrutiny of the Ministry of Finance in Poland doesn’t come as a surprise. This is because gambling operators in general can be targeted by criminal organizations, including groups involved in money laundering or other unlawful activities.

For the moment, the legal battle led by STS over the fine it received in Poland is ongoing.