Crown Resorts and the Australian Transaction Reports and Analysis Centre (AUSTRAC) have agreed to a AU$450 million ($294 million) penalty over historical non-compliance with anti-money laundering and counter-terrorism financing (AML/CTF) laws at Crown Melbourne and Crown Perth.
Crown Resorts shared the information on its website on Tuesday.
In reaching the agreement with the Australian government financial intelligence agency, Crown has admitted that it violated the Anti-Money Laundering and Counter-Terrorism Financing Act.
As part of the settlement, Crown has conceded that it had not appropriately evaluated the hazards posed by money laundering and terrorism financing to its casinos, and did not have enough safeguards in place to reduce such risks.
Crown also admitted that it “did not have a transaction monitoring program that was appropriate to the nature, size and complexity of their business”, and “did not conduct appropriate ongoing customer due diligence on a range of specific customers who presented higher money laundering risks”.
In a statement, Crown Resorts CEO Ciarán Carruthers said: “First and foremost, I want to reiterate that these historical failings were unacceptable and on behalf of Crown Resorts, our new owners and leadership, I apologize for the failings of the past.
“Today marks a significant step in the process and we are pleased to have reached this agreement with AUSTRAC, noting that it is still subject to consideration and approval by the Federal Court and we await that decision.
“There is no place for money laundering or terrorism financing at Crown or anywhere within our communities, and we will continue to invest in developing a sophisticated and robust framework supported by the right capabilities to combat this illegal behavior. We are committed to implementing these reforms to make Crown a better business and lift the standards for the entire industry,” Carruthers added.
“We continue to work closely with Crown to ensure that their AML/CTF program and systems are compliant and fit for purpose into the future,” he stated.
The final penalty is subject to approval by the Federal Court, with a hearing date set for July 10th and 11th.
Crown Resorts received last month a new fine of AU$30 million ($20 million) from the Victorian Gambling and Casino Control Commission (VGCCC) over bank cheque practices at its Melbourne property.
Crown Resorts was found to have allowed patrons to gamble at the Melbourne casino by depositing bank cheques made out to themselves, and not to Crown, even before the cheque had cleared.
Crown Resorts also was found in the Bergin inquiry to have facilitated money laundering and been associated with operators connected to organized crime.
