The Australian Transaction Reports and Analysis Centre (AUSTRAC) has confirmed today that a financial settlement has been successfully negotiated with Crown Resorts, where the casino operator agrees to pay a fine of AU$450 million ($293.4 million) caused by its violations.
Penalty Deemed Suitable for All Ramifications
Joint evidence provided by Crown Melbourne and Crown Perth to the Federal Court of Australia relating to Crown’s infringement of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 clearly reveals that Crown concurs with AUSTRAC that the suggested penalty is fitting considering all factors.
Nicole Rose, the CEO of AUSTRAC, while expounding on this development, clarified that the casino industry has been subject to unlawful activities by criminals keen to launder monetization attributed to the sale of contraband drugs, fraudulent activities, suspicious transactions, and even human trafficking operations.
“The myriad of breaches by Crown under the AML/CTF Act had the undesired consequence of enabling multiple high-risk actions, conduct, and customer relations to perpetuate unchecked for an extensive period,” Rose explained, highlighting how the casino business has reacted by “stepping up its strategy for ML/TL risk management and contributing adequately to its financial crime control.”
Crown Acknowledges AML/CTF Infringements
The settlement signifies that Crown Resorts concedes to numerous violations of the AML/CTF norms during its operations of Crown Melbourne and Crown Perth, including a failure to competently evaluate AML/CTF risks, lack of timely response to risk transformations, insufficient risk-based systems and measures in place to control AML/CTF risks, also a deficiency in the supervisory framework at the Board and senior management levels.
Among other admissions, Crown acknowledges falling short on maintaining a monitoring program for transactions relative to the business’s nature, scope, and complexities, inability to apply sufficient due diligence on high-risk customers, and failings in the due diligence program rendering the casino unable to conduct extra scrutiny on high-risk customers.
“We continue to collaborate closely with Crown to verify that their AML/CTF strategy and systems are conforming and future-ready,” concluded Rose.
AUSTRAC intimated that no more comments regarding the settlement or ongoing legal procedures will be made pertaining to this matter, as it is currently under judicial review. The end settlement sum will be decided by Justice Lee, who will take consideration of the settlement suggestion at a legal proceeding slated for July 10–11, 2023.
Devotion to Executing the Changes
Releasing a declaration, Crown Resorts applauded the agreement with AUSTRAC as “a significant stride” in rectifying its past lapses and underlining its obligation to society, law enforcement agencies, industry and its stakeholders to assure regulatory compliances with AML/CTF responsibilities.
“We firmly stand that there is neither room for money laundering nor terrorism financing within Crown or our society, and we remain committed to investing in effective and tough measures, equipped with the right systems to oppose such unlawful conduct,” as mentioned in the statement.
In conclusion, Crown emphasizes its pledge to implementing the necessary changes, “to transform Crown into an improved enterprise and elevate the standards for the entire industry.”
