The Victorian Commission for Gambling and Liquor Regulation says it is “actively monitoring’” an investigation by Taiwanese authorities into cash transfers by a subsidiary of Crown Limited’s Melco Crown joint venture in Macau.
The commission, which regulates Crown’s casinos in the Australian state, said it is watching developments in Taiwan as part of its mandatory five-year review of Crown’s suitability to hold its Melbourne license.
Taiwan authorities are investigating the activities of Melco Crown subsidiary MCE International to determine whether the company violated Taiwanese law by helping high rollers move some $170 million to Macau in circumvention of the island nation’s strict banking controls.
According to reports from Taiwan, the country has for several decades been concerned about the transfer of money offshore by its citizens in order to gamble.
Local reports quote a press release from the Taipei Independent Commission Against Corruption that alleges that a company, later identified as MCE, had violated Taiwanese law by operating a foreign-exchange business since 2008.
The head of MCE International was questioned by prosecutors in Taiwan earlier this month and released.
According to news reports, there was no comment from regulators in New South Wales, where Crown is campaigning for a casino license in Sydney and is seeking permission to increase its stake in listed rival Echo Entertainment above its current 10%
The VCGLR is expected to complete its review and report its findings to the Victoria cabinet by 30th June.