The Western Australian Royal Commission heard that the person overseeing the finances of two Crown casinos in Australia had been warned of a number of suspicious transactions that could suggest money laundering. He, however, was unable to remember taking any measures to prevent that.
The Royal Commission, which is currently investigating Crown Perth for possible violations of the gambling legislation and its casino licence, heard that in October 2014 the former legal boss of the gambling company, Joshua Preston, sent an email to Alan McGregor, asking him for advice about several deposits of less than AU$10,000 each but totalling about 110,000. Under Australia’s gambling laws, all money transactions of AU$10,000 and bigger are required to be reported to the Australian Transaction Report and Analysis Centre (AUSTRAC) – the country’s government agency that is engaged in financial crimes monitoring.
The counsel assisting the WA Royal Commission explained that the above-mentioned deposits were still lower than the limit set by the AUSTRAC but they could have still been reported as suspicious by the bank. Although Mr McGregor, who was the CFO for the Australian casinos of Crown Resorts at the time, shared he did not recall what he did to respond to the email, he agreed that the transactions could have been considered a red flag for possible violation of anti-money laundering rules.
The Western Australian Royal Commission also heard that in the period from 2007 to 2013, Mr McGregor served as a director and secretary for the company that was established to take the deposits of customers who wanted to keep their gambling private from their bankers, Riverbank Investments Pty Ltd.
Riverbank Accounts Used by Crown Resorts to Circumvent AUSTRAC’s Report Requirements
This is not the first time Crown Resorts is facing allegations that its services facilitated money laundering activities. A few months ago, Commissioner Bergin’s inquiry in New South Wales found that the Australian gambling giant had allowed and processed money laundering in its Perth casino venue exactly via the aforementioned Riverbank accounts.
Mr McGregor noted that he and a number of other major officials associated with Riverbank took responsibility for the unlawful activities unveiled in Commissioner Bergin’s report. Apart from naming himself, he also named Mr Preston, former chief executives at Crown Resorts Rowen Craigie and Ken Barton, as well as the former boss of the company’s Australian resorts Barry Felstead.
Mr McGregor agreed he was also responsible for financial transactions in the cage – the place where players are able to exchange their money for casino chips. He, however, was unable to explain why the above-mentioned deposits were processed by employees at the cage. He further confessed that he had taken no steps to inform the board of the company overseeing Crown Perth – Burswood Ltd – that the controversial Riverbank accounts were established in 2006. What is even more ironic, is the fact that Riverbank Investments Pty is a wholly-owned subsidiary of Burswood Ltd.
As heard by the WA Royal Commission, the Riverbank Investment account was never registered with the AUSTRAC or became subject to external audit by the government agency. It also became clear that Crown Perth was facing investigation by EY Australia whether it had underpaid taxes to the Government of Western Australia.
During the investigation of the Victorian Royal Commission into Crown Melbourne, prosecutors claimed that the casino company could owe the state’s authorities unpaid taxes of up to AU$480 million. Mr McGregor shared that a draft report had been completed and a final report could be expected to be unveiled in the near future.
- Author
Olivia Cole
