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Summary:
- Crown Resorts is facing a AU$450M fine for money laundering breaches
- This is the third largest fine in Australian corporate history
- Crown plans to pay the total fine within a 36 month period
Australian casino operator Crown Resorts admitted to multiple compliance breaches regarding anti-money laundering laws.
Crown Resorts has taken a massive beating to its reputation in the last 3 years as gaming regulators have pointed out serious non-compliance issues.
The most serious of these issues pertain to Crown’s relationship with Asian junket operators that allowed to bring in VIP gamblers who were permitted to exchange huge sums of money at Crown Resort properties without due anti-money laundering protocols being followed.
Crown Resorts To Pay Third Biggest Fine In Australian Corporate History
Crown prosecutors faced a Federal Court in Sydney on June 10 who heard Crown’s defence and the Australian Transaction Reports and Analysis Centre (AUSTRAC) have agreed on a total fine of AU$450 millionfor not following gaming regulations .
Crown Resorts is expected to pay AU$125 million immediately and will remit another AU$125 million at the end of 12 months. The casino operator will then have another 24 months to pay the remaining AU$250 million. The operator will have to remit the entire amount within a 36 month period which Crown resort executives have agreed to.
Crown Resorts agreed to the proposed fine and payment schedule after admitting that it did not carry out proper AML procedures for over 500 customers. More than 60 of these VIP gamblers are reported to have gambled with over $70 billion which is a very clear indication of money laundering.
Crown was prepared to turn a blind eye to these AML breaches and is now facing the third biggest fine in Australian corporate history. The two other fines that surpass the AU$450M penalty are Westpac who paid out AU$1.3 billion and Commonwealth Bank who had to pay a fine of AU$700 million.
Judge Wants Changes To Crown Payment Schedule
Justice Lee who presided over the case wasn’t very happy with the proposed payment plan that AUSTRAC and Crown have agreed to. Judge Lee pointed out that by Crown getting a 24 month interest free period to repay the remaining $250 million, Crown was getting a discount of around AU$50 million.
Philip Crutchfield KC who is part of Crown’s legal defense team has asked the Judge to not modify any of the payment agreement conditions as Crown could not pay any more than what they had agreed to!
