Australian casinos have been warned by the anti-money laundering authority AUSTRAC about a series of transnational criminal activities that have been taking advantage of junket gambling. Thanks to the agreements between casino operators and tour agencies, junket gambling has become a very popular activity in Australia.
AUSTRAC is urging casinos to take firm measures to prevent any risk of money laundering that may occur as a result of junket gambling. The authority warned that junkets are often targeting high-risk individuals from foreign countries as their potential patrons.
In a 2017 AUSTRAC report, it became clear that the Australian regulator knew that Asian junket operators worked together with a number of casinos to ensure them high-roller VIP customers from overseas. This type of gambling is potentially opening the door to a number of money laundering and terrorism hazards as it is unclear how this type of business is being funded.
Investigation on Junket Operators Amid Inquiry into Crown’s Activities
The junket gambling issue was brought to everyone’s attention after the recent inspection of Crown Resorts’ activities. The investigation was carried out by the Independent Liquor Gaming Authority of New South Wales (ILGA). Crown was involved in several money-laundering scandals and many questioned whether the operator was eligible to keep its gaming license. Due to the investigation, the launch of Crown’s Barangaroo casino was postponed until February of next year.
Thanks to junkets, a number of wealthy Chinese customers have been participating in gambling activities in Australia. This type of gambling has been extremely popular in the last few years, bringing casino operators like Crown a huge profit.
One of the reasons for the inquiry is the allegation about Crown partnering with Suncity, which is a huge junket operator, to launder money through its casinos located in Melbourne and Perth. To ensure that it is eligible to obtain its gaming license, the company announced that it will not work with any junket operators unless they have been licensed by the proper gambling authorities.
AUSTRAC issued a warning to all Australian casinos to evaluate the risk levels of junket gambling and take serious action to prevent criminal activities. Casino operators were urged to reinforce their controls and contact AUSTRAC if they have any suspicions about the business of junket operators.
Chief Executive of AUSTRAC, Nicole Rose, warned that junket operations may lead to more serious crimes such as drug or human trafficking. This can inflict serious harm on the Australian community, which is why the regulator urges local casinos to take the junket issue seriously.
Due to the ongoing pandemic, junket operations in Australia are put on hold. As there are still travel restrictions, overseas customers are not allowed to use the services of junkets to enter Australian casinos for the purpose of gambling.
- Author
Daniel Williams
