The gaming behemoth Crown Resorts, based in Australia, is embroiled in a federal court case over claims of substantial infractions of anti-money laundering and terrorism financing statutes.

Following a protracted inquiry, AUSTRAC, Australia’s financial regulator, has initiated legal proceedings against Crown. They allege “grave and widespread” breaches of AML and CTF regulations at their prominent Melbourne and Perth casinos. AUSTRAC’s investigation concluded that Crown suffered from “subpar governance, risk management shortcomings, and insufficient AML/CTF protocols.”

The AUSTRAC lawsuit details a series of lapses, including inadequate risk evaluations, a dearth of suitable transaction oversight, and failures to execute appropriate due diligence on patrons. In essence, they are asserting that Crown disregarded the movement of potentially unlawful funds.

Nicole Rose, the CEO of AUSTRAC, stressed that Crown’s absence of suitable safeguards fostered an environment susceptible to exploitation by criminal entities, jeopardizing the Australian financial system. She declared that this legal action aims to compel enduring reform within Crown and guarantee they satisfy their legal duties to combat financial wrongdoing.

This serves as a significant alarm for all gaming establishments in Australia. It is imperative that they establish strong frameworks to combat illicit financial activities. This is the sole method to safeguard themselves, and indeed the entire nation, from the profoundly detrimental consequences of criminal syndicates.” Ms. Rose stressed that AUSTRAC has been collaborating closely with the Australian casino sector through “continuous regulatory interaction” to enhance adherence standards. She continued, “Crown is undertaking measures to ameliorate its systems, procedures, and resource allocation, however, substantial work remains. AUSTRAC will maintain close cooperation with Crown to address persistent compliance concerns.”

In a distinct communication, Crown Resorts recognized that they had foreseen these civil penalty actions and “have formulated a comprehensive corrective strategy. The objective is to become the industry frontrunner in governance, regulatory adherence, responsible gaming practices, and the mitigation of financial crime hazards.”