Australia’s financial crimes watchdog AUSTRAC has been slammed by the federal judge presiding over its case against casino giant Crown Resorts for taking too long to prosecute.
In a brutal slap down in which he noted that settlement to end the Napoleonic wars took less time, Justice Michael Lee questioned whether AUSTRAC was serious about punishing Crown for breaches of anti-money laundering laws and ordered solicitors to proceed with their prosecution, according to a report by the Australian Financial Review.
“The Congress of Vienna took nine months to talk about the future of Europe, you’ve had 12 months to talk about admissions,” Justice Lee fired, pointing to the fact that charges against Crown Melbourne and Crown Perth were first filed with the court in March 2022.
“I’m not going to give any more time for there to be chit-chat between solicitors. We’re going to get the matter on.”
Justice Lee also questioned why AUSTRAC’s lawyers had agreed to a request by Crown to settle on agreed facts and admissions and give it until May to prepare a defense.
“I just find it astounding. Why on earth would a regulator agree to a timetable like that?” he said.
“It’s in the public interests that these proceedings be determined and be determined with alacrity. It’s already meandered for a year. I just want to know whether the regulator in this case is serious about running the case or not?
“Because if they’re serious about running this case, I do not understand why they’re suggesting it’d be 15 months before the court starts managing the case.”
AUSTRAC’s legal team replied that it was “very serious” about running the case but explained it was not in a position to determine how long Crown’s “extremely experienced” lawyers needed to prepare their case.
AUSTRAC’s case, filed on 1 March 2022, alleges Crown engaged in serious and systemic non-compliance with Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws.
Specifically, it alleges Crown failed to assess the risk posed by 60 high risk VIP customers who had turned over more than AU$70 billion since March 2016, racking up AU$1.1 billion in losses.
“AUSTRAC’s investigation identified poor governance, risk management and failures to have and maintain a compliant AML/CTF program detailing how Crown would identify, mitigate and manage the risk of their products and services being misused for money laundering or terrorism financing,” said AUSTRAC CEO Nicole Rose at the time.
“They also failed to carry out appropriate ongoing customer due diligence including on some very high-risk customers. This led to widespread and serious non-compliance over a number of years.”
AUSTRAC has since launched proceedings against Star Entertainment Group and SkyCity Adelaide for similar failings.
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