.svg)
Body
Australia鈥檚 financial transactions watchdog has asked a court to fine Blackstone Group-controlled casino operator Crown Resorts A$450m ($293m) for breaching anti-money laundering and counter-terrorism financing (AML/CTF) legislation.
After a year-long probe, AUSTRAC announced on Tuesday (May 30) that it and Crown filed joint submissions to the Federal Court in Sydney agreeing to the proposed civil penalty, together with a 133-page of 鈥渁greed facts and admissions鈥 regarding Crown鈥檚 years of compliance breaches under previous management.
The pending AUSTRAC fine, as approved or amended by the Federal Court, is set to be the largest yet suffered by Crown since the unravelling of its James Packer-era ownership over a host of compliance failures.
The court is due to hear the matter at hearings on July 1o and 11.
In a statement, AUSTRAC said Crown admitted to the court that its Melbourne and Perth casinos had violated several compliance obligations by failing to assess and monitor money laundering and terrorism financing (ML/TF) risk, having no risk-based systems and controls to this end, and displaying poor board oversight.
Crown also lacked a transaction monitoring mechanism befitting a large casino operation, appropriate due diligence mechanisms for higher-risk customers and failed to impose due diligence on 鈥渁 range of specific customers who presented higher money laundering risks鈥.
鈥淐rown has sought to respond to the failures identified in these proceedings by enhancing its approach to ML/TF risk management and investing in its financial crime compliance,鈥 said Nicole Rose, CEO of AUSTRAC.
鈥淲e continue to work closely with Crown to ensure that their AML/CTF program and systems are compliant and fit for purpose into the future.鈥
Crown apologised 鈥渇or the failings of the past鈥 in a statement.
鈥淔irst and foremost, I want to reiterate that these historical failings were unacceptable, and on behalf of Crown Resorts, our new owners and leadership, I apologise for the failings of the past,鈥 CEO Ciar谩n Carruthers said.
鈥淭he company that committed these unacceptable, historic breaches is far removed from the company that exists today. The Crown of today is committed to harm minimisation and becoming the world leader in the delivery of safe gambling and entertainment,鈥 he said.
The Crown statement concluded with a lengthy list of governance and compliance reforms developed in conjunction with AUSTRAC and the government gambling regulators in the states of New South Wales, Victoria and Western Australia.
Crown has suffered a series of fines, government probes and years of dismal media coverage over misbehaviour primarily associated with its business activities in China and the fiscal and strategic handling of Chinese gamblers through junket partners.
Victoria鈥檚 gambling regulator fined Crown A$30m in April over improper customer cheque practices, following a A$120m fine in November for various breaches and a A$58m fine last May for cashcard scam activity.
The likely record-breaking AUSTRAC fine for Crown also bodes ill for The Star Entertainment Group, which AUSTRAC sued in November over 鈥渋nnumerable鈥 violations of AML/CTF legislation.
