The financial crimes arm of the Australian government, AUSTRAC, has launched a formal enforcement investigation into potential infringements of the country’s anti-money laundering laws by Crown Resorts.
In a Monday morning filing with the Australian Securities Exchange, Crown revealed that it had been informed of the investigation by AUSTRAC after the authority’s Regulatory Operations branch identified potential non-compliance by Crown Melbourne of the Anti-Money Laundering and Counter Terrorism Financing Act 2006 and the Anti-Money Laundering and Counter Terrorism Financing Rules 2007.
The potential non-compliance relates to “ongoing customer due diligence, and adopting, maintain and complying with an anti-money laundering/counter terrorism financing program,” Crown said.
It added that the concerns were identified “in the course of a compliance assessment that commenced in September 2019 and focused on Crown Melbourne’s management of customers identified as high risk and politically exposed persons.”
The matter has been referred to AUSTRAC’s enforcement team.
News of the investigation comes just 10 days after Victoria’s gaming regulator issued a notice to show cause why Crown should not be disciplined for alleged failures of its internal junket controls.
It also follows comes in the wake of multiple Crown executives, as well as its largest shareholder James Packer, fronting a NSW Independent Liquor and Gaming Authority inquiry into Crown’s suitability to hold a casino license for its new AU$2.2 billion Crown Sydney development, due to open on 14 December.
The inquiry has raised questions over the company’s due diligence processes in relation to its international VIP operations and the failed attempt by Packer to sell a 19.99% stake to Melco Resorts & Entertainment. It has also revealed that Packer continues to maintain strong influence over the Crown board despite stepping down as a director in 2018.
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