James Packer’s Crown Casino Has Been Hit Hard by a Financial Regulator Accused of Ignoring “High-Risk” Customers

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

• Twitter
• Email

More About John Isaac

Last updated: March 14, 2022

Crown casino in Melbourne and Perth were blamed for money laundering and funding terrorism. On 1st March, the Australian Transaction Reports and Analysis Centre (AUSTRAC) filed statement for both operations and opened a civil criminal case in federal court, following an inquiry launched in Oct 2020. The Australian financial intelligence agency is in charge of controlling, detecting, and reacting to illegal misuses in the Australian fiscal system.

According to agency CEO Nicole Rose, Crown’s breach of its money laundering and terrorist funding commitments has left Australia’s business and economic structure weak to illegal use. She also said the Australian Transaction Reports and Analysis Centre inquiry uncovered poor management, risk control, and the absence and maintenance of compliance. The program describes how operators will find, reduce and handle risks associated with services and products used for terrorist funding or money laundering.

The authority in charge of finding and examining crimes related to the misuse of the Australian financial system, AUSTRAC, has filed lawsuits against the Crown casinos in Melbourne and Perth.

Crown Operators Founder Still Holds 37% of Shares

AUSTRAC states that Crown’s defeat to comply with its money laundering and terrorist funding duties has left Australia’s business and financial systems weak to illegal use. They are also unsuccessful to conduct adequate and continuous client due diligence. It includes a few high-risk clients which has led to critical and extensive rules abuse over the last few years.

According to Ms. Rose, the lack of proper procedures and rules to allow money to be transferred in a non-transparent manner leaves the Crown vulnerable to offenders. It is an important suggestion for all Australian casino operators to have a robust anti-money laundering system in place to rescue their companies and communities from the systematic offense.

Crown operator said the lawsuit has anticipated, and it operates to enhance management, observation, gaming accountability, and risk control.

“Crown is currently reviewing AUSTRAC’s statement of claim,” – stated the operator.

James Packer is currently holding 37% of Crown, but has anticipated finishing his engagement in the sale if Blackstone’s offer is successful.

Crown Failed to Conduct Due Diligence on High-Risk Customers

Australian Transaction Reports and Analysis Centre claims that Crown casino didn’t manage to carry out ongoing client due diligence. In addition, James Packer’s stake in the firm he established will disappear if Blackstone’s recent $9 billion bid from private equity company Blackstone succeeds.

Previous regulatory investigations into a casino have resulted in the New South Wales gambling authorities suspending the Melbourne casino license while the state canceled the Barangaroo casino’s betting license in Sydney.

An investigation into the firm’s casinos in Perth is expected to release its results shortly. AUSTRAC is in charge to ensure standards are met which is why they carry out regular reviews, therefore, it is not uncommon for this organization to spot some errors and breaches by some of the operators. However, the severity of the scandal with Crown casinos seems to be huge considering that AUSTRAC is not only blaming the company for money laundering, but also for financing terrorism.