Casino giant Crown Resorts is now facing a new challenge for its operating licences and the prospect of being imposed massive monetary fines after the Australian Transaction Reports and Analysis Centre (AUSTRAC) informed that it has recognised potential non-compliance issues at the company’s Crown Melbourne casino.
As revealed in a statement by the Australian casino company, the potential non-compliance involved some concerns associated with ongoing customer due diligence, as well as with complying with, adopting and maintaining a counter-terrorism and anti-money laundering financing program. The casino giant shared that the abovementioned concerns were identified in the course of a compliance assessment that started in September 2019 and focused on Crown Melbourne’s management of customers who are considered at the highest risk of gambling-related harm.
The investigation held by the Government agency that is responsible for the compliance with anti-money laundering legislation comes after an inquiry held into the gambling operator’s services by the New South Wales Independent Liquor and Gaming Authority (ILGA) following allegations of Crown Resorts violating the licence for its Barangaroo, Sydney casino.
As Casino Guardian reported earlier, the probe was given a start by the plans of the largest investor in Crown Resorts, Mr James Packer, to sell a 19.9% stake to Melco Holdings, a Macau-based gambling operator controlled by Lawrence Ho.
AUSTRAC Probe Follows Regulatory Inquiry in Crown’s High-Roller Practices
After a number of media hubs revealed that money laundering could have taken place in Crown Resorts’ premises, the probe has expanded over the high-roller room in Crown Melbourne and the company’s alleged relationship with junket operators that specifically target so-called VIP customers – foreign affluent customers who are taken to the company’s casinos to spend money there.
The revelations made by the local media outlets have included allegations of cash being handed over in bags in the VIP customer rooms of the Crown Melbourne, with these practices breaching the normal anti-money laundering controls that the casino is required to follow.
Furthermore, the inquiry also heard evidence that Crown Resorts operated Riverbank and Southbank accounts that were used to provide affluent customers to make money deposits without disclosing their identities. The accounts held by the casino operator for these companies were closed by the ANZ and later by Commonwealth Bank after reports emerged that the deposits were being designed especially to keep them below the AU$10,000 threshold at which customers are required to report their source of income.
The probes could affect the Barangaroo project of Crown Resorts. The casino, which is supposed to be particularly attractive to high-roller customers, is scheduled to start operation in December.
Now, Crown Resorts is reportedly expecting an investigation to be started by AUSTRAC, especially after the evidence before the inquiry for its Sydney-based casino. AUSTRAC can impose civil penalties amounting to hundreds of millions and can be levied on each violation of the company’s operating licence. So far, the government’s anti-money laundering regulatory body has imposed an AU$1.3-billion fine for 23 million breaches on Westpac, while Commonwealth Bank was imposed a fine amounting to AU$700 million.
The Australian casino giant said that the issue had been referred to the enforcement team of AUSTRAC, which has already initiated a formal enforcement probe into the Crown Melbourne’s compliance.
- Author
Olivia Cole
