Earlier today, the Australian anti-money laundering agency announced its decision to expand a due diligence probe into the three largest casino operators in the country, fuelling more pressure on the country’s gambling sector that has already been facing the negative effects of the coronavirus pandemic and the stricter regulatory rules that apply on the sector.
After months of investigation into Crown Resorts, the biggest casino company in the country, the Australian Transaction Reports and Analysis Centre (AUSTRAC) revealed that it started a formal probe into possible breaches of the rules regarding background checks at Star Entertainment Group and SkyCity Entertainment Group. In other words, the owners of casino venues in the five most populous cities in Australia are now facing enforcement investigations that could lead to monetary fines or operating licence restrictions.
In a statement issued to the stock exchange, SkyCity Entertainment confirmed that AUSTRAC informed that a number of concerns had already been identified. The Government’s financial intelligence agency had started a formal probe into SkyCity Adelaide’s compliance with the country’s counter-terrorism financing and anti-money laundering laws.
In its statement, SkyCity Entertainment said it takes anti-money laundering obligations and responsibilities very seriously. The company, which currently has a casino venue in Adelaide, apart from the ones in New Zealand – in Auckland, Queenstown and Hamilton – also confirmed it has some processes and practices in place to make sure it detects and prevents money laundering activities. The casino operator further noted that it would provide its full cooperation to the AUSTRAC.
Crown Resorts’ and SkyCity Entertainment’s Casino Venues Become Subject of AUSTRAC Investigations
The abovementioned concerns buoyed to the surface after a compliance assessment of SkyCity Adelaide’s customer management practices released by AUSTRAC in September 2019 found high risk and political exposure. The agency’s assessment covered two periods – one between July 1st, 2015 and June 30th, 2016, and another one between July 1st, 2018 and June 30th, 2019.
For the time being, no decision had been made by the AUSTRAC about whether any enforcement action against SkyCity Entertainment would be taken. No actions against the two other companies affected by the probes have been taken yet.
The largest casino operator in Australia, Crown Resorts, has already been under intense pressure following the damning report of NSW Commissioner Patricia Bergin, which found the gambling giant unfit to hold the licence for its new AU$2.2-billion casino in Sydney. Furthermore, the findings of Commissioner Bergin’s report also triggering the establishment of Royal Commissions in two other states and fuelling class-action lawsuits against the company. The AUSTRAC probe was also expanded to Crown Resort’s casino in Perth.
The financial intelligence body said that the casino sector in Australia is at risk of criminal misuse because of the products and services that are currently being offered. That was exactly the reason why Crown Resorts and the two aforementioned casino operators are now facing investigations.
As revealed by the AUSTRAC, the agency was concerned with the management of high-risk customers and politically exposed persons that has been carried out by all three casino companies.
- Author
Daniel Williams
