The Australian Transaction Reports and Analysis Centre (Austrac), the national financial intelligence agency overseen by the government, has accused several top land-based casino operators in Australia of engaging in money laundering.
Austrac claims that several leading land-based casino operators in Australia have been participating in money laundering activities. These accusations involve Crown Resorts, Star Entertainment, and SkyCity Entertainment Group. The National Australia Bank (NAB) has also been contacted by Austrac.
Austrac is tasked with monitoring financial transactions to detect money laundering, organized crime, tax evasion, welfare fraud, and terrorism financing. The agency declared that the accusations pertain to “serious violations” of the Australian Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) and the Anti-Money Laundering and Counter-Terrorism Financing Rules Regulations 2007 (AML/CTF Rules).
Crown has stated that the notification it received concerns its Crown Perth hotel, which has been under investigation since last October for potential regulatory infractions.
As per the Australian Transaction Reports and Analysis Centre (Austrac), Crown Resorts may have seriously broken the Anti-Money Laundering and Counter-Terrorism Financing Act and the Anti-Money Laundering and Counter-Terrorism Financing Regulations. Austrac has also initiated a formal inquiry into the adherence of Crown Perth to these regulations.
Crown Resorts has also received legal counsel suggesting that a practice at Crown Melbourne between 2012 and 2016 violated Section 68 of the Victorian Casino Control Act of 1991. This practice involved Crown collecting funds from international visitors at the Crown Towers Hotel in Crown Melbourne using their debit or credit cards, and then providing these funds to the guests for gambling at the casino.
Section 68 of the Act forbids casino operators from providing funds or chips as part of a transaction involving a credit card or debit card related to gambling or betting within the casino. Crown processed over A$160 million (£88 million/€102 million/$124 million) through this method, which was halted in November 2016.
Crown Resorts stated that the investigation is ongoing and the company has informed the Victorian Commission for Gambling and Liquor Regulation and the Victorian Royal Commission.
Concurrently, Star Entertainment Group stated that the notice it received pertains to Star Sydney and the potential violations relate to concerns about ongoing customer due diligence, the implementation and maintenance of anti-money laundering/counter-terrorism financing programs, and compliance with such programs.
The Australian Transaction Reports and Analysis Center (Austrac) uncovered these issues during a conformity evaluation in September 2019, zeroing in on the casinos’ administration of clients recognized as high-risk and politically exposed individuals, for the timeframes July 1, 2015, to June 30, 2016, and July 1, 2018, to June 30, 2019.
Austrac’s enforcement unit will probe the matter, while the organization stated it has not yet decided on any regulatory action against Star Entertainment Group.
“Star Entertainment Group takes its anti-money laundering responsibilities very seriously and will fully cooperate with Austrac’s requests for data and documents and the investigation,” Star Entertainment Group mentioned in a statement.
Elsewhere, SkyCity stated the accusations were about possible serious infractions at SkyCity Adelaide, again involving ongoing customer due diligence, the adoption and maintenance of anti-money laundering/counter-terrorism financing programs, and adherence to the program.
Austrac discovered these issues in a conformity evaluation in September 2019, concentrating on the casino’s administration of clients recognized as high-risk and politically exposed individuals, for the timeframes July 1, 2015, to June 30, 2016, and July 1, 2018, to June 30, 2019.
The organization has not yet specified what form of regulatory action SkyCity may encounter, but will be requesting more information from the operator. SkyCity stated it will fully cooperate with Austrac’s investigation.
A prominent gambling establishment, SkyCity, has underscored its dedication to battling money laundering, asserting that they have strong procedures in place to identify and thwart such actions. These procedures are routinely examined to guarantee adherence to all pertinent rules.
In the meantime, the Australian Transaction Reports and Analysis Centre (Austrac) has voiced worries about potential violations of anti-money laundering and counter-terrorism financing laws by the National Australia Bank (NAB). Austrac emphasized potential issues with customer identification protocols, ongoing due diligence, and compliance with facets of their anti-money laundering program.
Austrac’s enforcement unit has launched a formal inquiry into NAB’s practices, but has chosen not to pursue civil penalties at this juncture, recognizing the bank’s efforts to address the concerns.
NAB has acknowledged the referral to Austrac’s enforcement unit, highlighting their ongoing cooperation with the agency to report issues and provide updates on enhancements to their anti-money laundering program.
The bank has invested significantly, roughly A$800 million, in a multi-year initiative aimed at bolstering financial crime and fraud controls. They have also dedicated a sizable workforce, over 1,200 employees, to managing financial crime risks.
NAB CEO Ross McEwan reiterated the bank’s commitment to financial crime prevention, acknowledging the necessity for further improvements in their performance in this domain.
Weve been diligently striving to enhance our operations, and there’s still further progress to be made.
National Bank assumes a crucial role in pinpointing and reporting dubious activity, safeguarding Australia’s financial framework, our banking institutions, and our clientele.
“Fortifying our financial crime countermeasures, curtailing risk for patrons and the bank, and boosting operational effectiveness is a paramount objective for everyone at National Bank. This is why we’re so dedicated to ensuring the fundamentals are executed correctly every time, to safeguard our customers and our financial institution.”
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