After the postponement of the launch of Barangaroo casino, Crown Resorts decided to finally appoint a chief compliance and financial crimes officer. The Australian casino company chose Steven Blackburn for this new position as he has years of experience in this field. Blackburn is currently working as a chief financial crime risk officer at the National Australian Bank (NAB). In addition to that, he is also the laundering reporting officer at the major financial institution, making him a perfect candidate for the newly created position at Crown.
The appointment of Blackburn followed a series of scandals that Crown was involved in for the past few years. Some even deemed Crown as not suitable to have a gambling license as it was rumoured to participate in money laundering schemes, gambling wars, and illegal partnerships. As the reputation of the casino operator was seriously shaken up, it decided to appoint a new compliance division led by Blackburn.
The Purpose of Appointing Crown’s New Financial Crime Risk Officer
Currently, Crown is under an investigation led by the New South West Independent Liquor and Gaming Authority (ILGA). The gaming license of Crown is at risk if ILGA finds that the casino operator is unable to manage any financial crime risks and offer proper compliance. The investigation of ILGA is expected to be finished by February 1, while Blackburn is assigned to begin his work with the compliance division in March.
The new financial crime risk officer will report the work of the new division directly to Crown’s CEO, Ken Barton, and the Board of Directors, which may displace some of its members by March next year. To ease ILGA’s concerns about Crown being involved in money laundering and other criminal activities, the company has already replaced some of its board members. Those include Crown Executive Chair John Alexander and Deputy Chairman John Horvath who is planning to resign soon.
One of the reasons Crown decided to hire Blackburn is the failed attempt to launch Crown Sydney. Due to the numerous scandals, the company was denied the chance of opening its new casino. As a result, Crown is now striving to prove to regulators that it can cooperate and prevent any future financial risks.
The beginning of 2021 is expected to be an important period for Crown, with the work of Blackburn potentially having an impact on the company’s future. If Crown is considered unsuitable to hold its gaming license, this will lead to a serious loss, estimated roughly around $1.6 billion. Since Crown Sydney is finished and ready to operate, the casino operator hopes to prove that it can sustain a properly regulated and fair business.
Blackburn is well-experienced in detecting financial crime risks and knows all the tricks that may be used to fool gaming regulators. This is why it will be interesting if he will unveil anything illegal in Crown’s operation.
- Author
Olivia Cole
