The Australian Transaction Reports and Analysis Centre (AUSTRAC) has announced that it has proposed and agreed a financial penalty of AU$450 million (€274.95 million) with Crown Melbourne and Crown Perth for breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).
According to the announcement, both Crown and AUSTRAC filed joint submissions to the Federal Court of Australia outlining the proposed settlement. A court hearing has now been set for 10th to 11th July 2023 during which the court will consider the proposed settlement.
Although both AUSTRAC and Crown have agreed on the settlement figure, the court may opt to reduce or increase it as it sees fit.
Ahead of the settlement agreement Crown admitted to the breaches which included:
- Failure to assess money laundering and terrorism financing risks.
- No appropriate risk-based systems and controls in AML/CTF programs.
- No appropriate framework for Board and senior management oversight of AML/CTF programs.
- No transaction monitoring program suitable for size of business.
- No appropriate procedures to ensure higher risk customers were scrutinized.
- No ongoing customer due diligence for specific customers who presented higher money laundering risks.
Speaking of the proposed settlement and the breaches, AUSTRAC 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.
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.”
In a statement released today, 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 apologise 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.
He went on to add:
“We take seriously the responsibility we have to the community, to law enforcement, to our industry and stakeholders to ensure that we continue to comply with our AML/CTF obligations. 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 behaviour. We are committed to implementing these reforms to make Crown a better business and lift the standards for the entire industry.”
In November of last year, The Victorian Gambling and Casino Control Commission (VGCCC) fined Crown Casino Melbourne a total of AU$120 million (€77.6 million) following an investigation which uncovered serious social responsibility breaches at the casino property. This latest settlement would see the total penalties paid by Crown Resorts hit AU$650 million (€397.15 million).
Ciaran has been working within the Gambling Industry as a deep analyst since 2019. His deep knowledge and understanding of all the gambling regulations, and processes makes him a true asset, and an always valuable point of view for Gambling Industry News, allowing us to cover every topics from a brand new perspective.