Fine comes after AUSTRAC launched civil proceedings against the company
Crown Resorts, which operates Crown Melbourne and Crown Perth, has been ordered by the Federal Court of Australia to pay a $450 million penalty over two years for breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act), according to AUSTRAC.
This comes after AUSTRAC launched civil penalty proceedings against the company. Crown and AUSTRAC filed joint submissions in May 2023 regarding the payment of $450 million in instalments over two years, which was approved by the Federal Court in a ruling issued Tuesday. The court also ordered Crown to pay AUSTRAC’s costs.
As part of the settlement, Crown has admitted to operating in contravention of the AML/CTF Act. Crown Melbourne and Crown Perth’s AML/CTF programs were found to be inadequate in terms of appropriate risk assessments, systems and controls, and oversight by their Boards and senior management.
This allowed high-risk activities to take place in its casinos without intervention, AUSTRAC said. For example, Crown continued a business relationship with a major casino junket operator until 2021, despite allegations the operator was connected to organised crime. The company also failed to appropriately monitor billions of dollars in transactions, including international payment flows. This impacted Crown's ability to identify and disrupt suspicious activity and to report suspicious matters to AUSTRAC and law enforcement.
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In settling the proceedings, AUSTRAC acknowledged the ongoing efforts undertaken by Crown to address the AML/CTF failings. Acting AUSTRAC CEO Peter Soros said that this outcome sends a strong message to Crown, casinos, and the gaming industry to take their AML/CTF obligations seriously and that businesses must have strong compliance systems and processes in place to protect against serious financial crime.
“$450 million is one of the largest penalties ever ordered against a casino globally,” Soros said. “It serves as a clear warning to anyone who provides casino or gaming services in Australia that they must have strong AML/CTF compliance systems and processes that meet their obligations, to protect the Australian community and their businesses from serious financial crime. AUSTRAC is committed to ensuring all regulated businesses, as our first line of defence, do their part in the fight against financial crime and will not hesitate to take enforcement action when serious failings are identified.”
AUSTRAC has also targeted banks including NAB and Commonwealth Bank, for violations of anti-money laundering regulations.
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