Crown Resorts exec did not get ‘in-depth’ anti-money laundering training until 10 years into job
The former CEO of Crown Resorts received no in-depth training on money laundering until last year, an inquiry heard.
The former boss and one-time chief financial officer of Crown Resorts did not receive any in-depth anti-money laundering training until last year, just months before a NSW inquiry forced him to resign over his failure to probe indications of money laundering in company accounts.
The West Australian royal commission into Crown’s Perth casino also heard how Ken Barton – who was CFO of the James Packer-backed group from 2010 to 2020 and then CEO until last February – did not appreciate the risks associated with a policy that potentially left the casino’s door open to high-risk customers with links to organised crime.
Under questioning from counsel assisting Michael Feutrill SC, Mr Barton was asked how familiar he was with the ways criminal groups used casinos to launder dirty money.
“I didn’t have a great deal of exposure to that,” Mr Barton said, explaining that his only formal education in anti-money laundering, or AML, until last year was through intermittent online modules.
“Certainly through the course of last year I spent quite a bit of time with the then head of AML and gained a deeper understanding, through the course of last year, about the AML program, and the AML issues to do with Crown.”
The commission is examining Crown’s suitability to run Crown Perth, the only casino in the state.
Mr Barton stepped down as CEO in February after the NSW Bergin inquiry chastised him for failing to investigate money laundering concerns in company accounts used by patrons to repay gambling debts.
He was replaced as CEO by Crown Resorts chairman Helen Coonan, but retains a consultancy agreement with the company which he told the commission made him “available to respond to any issues that arise in relation to any of the work that was under way when I left employment”.
In her report, inquiry commissioner Patricia Bergin said Mr Barton failed to order a proper review of the Crown accounts, which were linked to subsidiary companies Riverbank and Southbank.
That’s despite Mr Barton being aware that in 2014 ANZ closed accounts linked to the subsidiaries over concerns they were being used to launder money from overseas.
Accounts linked to the subsidiaries were also closed by HSBC in 2013 when the bank exited the gaming sector – but Mr Barton said he wasn’t aware of this until last year.
In 2019, the Commonwealth Bank also closed subsidiary accounts over money laundering concerns.
Mr Feutrill asked Mr Barton if he investigated some of the reasons ANZ closed the accounts, including concerns that overseas “money changers” were facilitating multiple deposits under the $10,000 threshold at which the transaction must be disclosed to the financial crimes regulator.
“Did you understand there to be some form of relationship between either Crown Perth and Crown Melbourne and money changers either locally or overseas?” Mr Feutrill asked.
“In 2014? No … I’ve become aware of money changers who Crown has dealt with over the last couple of years,” Mr Barton replied, although he could only name one, called “Nene”.
“I don’t recall specifically where they were located.”
The commission also heard that Mr Barton never considered the appropriateness of a former policy that allowed high-risk customers who are “known to be engaged in money laundering or terrorism financing” to continue gambling at Crown Perth at the discretion of Crown’s AML compliance officer.
“It’s indicating that there is a willingness on the part of the casino operator notwithstanding that risk, that patent risk, to continue to carry out and offer services … presumably for the reason of financial gain,” Mr Feutrill said.
In reply, Mr Barton said that while what actually happened in practice might be different, he agreed “that discretion leaves that opportunity open”.
The commission also heard that the threat of organised crime groups using Crown Perth to launder money was increased by another former policy which gave responsibility of probity checks for international junkets to Crown’s credit team.
Another royal commission into Crown running in Victoria heard in May that the credit team “were not appropriately trained in anti money laundering.”
While Mr Barton was the CFO at the time the laundering was allegedly taking place, he said he had little knowledge of the credit process for junket operators, given it was not handled by his finance portfolio.
The commission will resume on Wednesday to hear evidence from Crown Resorts’ current CFO Alan McGregor.
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