Crown Melbourne and Crown Perth (Crown) and Austrac have filed joint submissions to the Federal Court, proposing a penalty of $450m for Crown’s breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

Justice Michael Lee will consider the proposed penalty at a court hearing set down for 10-11 July and while both sides have agreed to the $450m, it will be for the court to determine the appropriate penalty.

Chief Executive Officer, Nicole Rose said: “Crown’s contraventions of the AML/CTF Act meant that a range of obviously high-risk practices, behaviours and customer relationships were allowed to continue unchecked for many years.”

In reaching this agreement, Crown has admitted that it operated in contravention of the AML/CTF Act, including that Crown Melbourne and Crown Perth:

  • Failed to appropriately assess the money laundering and terrorism financing risks they faced, and to identify and respond to changes in risk over time.
  • Did not have appropriate risk-based systems and controls in their AML/CTF programs to mitigate and manage the money laundering and terrorism financing risks they faced.
  • Failed to establish an appropriate framework for Board and senior management oversight of their AML/CTF programs.
  • Did not have a transaction monitoring program that was appropriate to the nature, size and complexity of their business.
  • Had an enhanced customer due diligence program that lacked appropriate procedures to ensure higher risk customers were subjected to extra scrutiny.
  • Did not conduct appropriate ongoing customer due diligence on a range of specific customers who presented higher money laundering risks.

Rose added: “Crown 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. 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.”

Rose also said that the casino sector is at risk of exploitation by organised criminals seeking to clean their dirty money, money which criminals make through the sale of illicit drugs, scams and even human trafficking.

Andy Young

Andy joined Intermedia as Editor of The Shout in 2015, writing news on a daily basis and also writing features for National Liquor News. Now Managing Editor of both The Shout and Bars and Clubs.

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