Regulators ‘comprehensively reviewing’ Crown Resorts’ practices in Victoria
Damning evidence came from a NSW public inquiry about Crown’s potential links to organised crime and alleged money laundering.
The Victorian gaming regulator is working with the federal financial crime body, Austrac, on a comprehensive review of Crown Resorts’ internal controls at its Melbourne casino for junkets and VIP players.
Amid damning evidence presented to a NSW public inquiry about Crown’s dealings with junket players linked to organised crime and allegedly involved in money laundering, the Victorian Commission for Gaming and Liquor Regulation said on Thursday that concurrent to the inquiry, it had also completed a review of Crown’s internal control statements.
“(The VCGLR) has commenced work to strengthen the system of internal controls that Crown must implement, including controls relating to junket and premium player arrangements,” the VCGLR said in its annual report tabled in the Victorian Parliament on Thursday.
Junkets organise credit, travel and accommodation for offshore high rollers to visit Australian casinos to gamble.
“Specifically, the Commission has instigated a process to update the Internal Control Statements relating to the source of funds and wealth of individuals involved in junket and premium player arrangements. We are consulting with Austrac and Crown through this process,” the regulator said.
It comes after Austrac revealed last week that it had commenced a formal investigation into Crown amid allegations that money laundering took place at its Melbourne and Perth casinos.
In her evidence before the NSW inquiry, Crown chairman Helen Coonan acknowledged Crown had inadvertently “facilitated” and “enabled” money laundering by junket operators at its Melbourne casino but denied it had turned a blind eye to the issue.
Earlier this month the VCGLR also issued a notice to Crown requiring it show cause why it should not take disciplinary action over the casino’s failure to conduct property due diligence in the supervision and approval of junket players.
The sanctions could include the imposition of a fine, the issuing of a letter of censure, or directing Crown to take corrective action.
The VCGLR confirmed it was still reviewing the circumstances surrounding the arrest of Crown staff in China in October 2016, which has involved undertaking further interviews and reviews of additional documentation.
The VCGLR revealed Crown had waived its legal professional privilege over a large amount of material it had previously declined to provide and as a result said it was still working through a “voluminous” amount of “new material”.
The NSW Inquiry heard of multiple risk management and governance failures that meant the Crown board was not aware of the risks presented to Crown staff in China following to the Chinese government’s crackdown on its citizens gambling in foreign casinos before the arrests.
19 Crown staff were jailed, including its head of VIP operations Jason O’Connor.
The VCGLR continues to monitor Crown’s implementation of the 20 recommendations in the regulator’s Sixth Review of the casino company’s licence, which was released in July 2018.
While Crown executives were due to meet the commission in March this year to discuss the implementation of the changes, the meeting was deferred because of the COVID-19 pandemic.
“It is intended to hold a face-to-face meeting as soon as practicable,’’ the regulator said.
More Coverage
Why Regal’s Phil King is taking on the widowmaker trade
Is the hedge fund boss being brave or foolhardy by going where many have gone before and fortunes have been lost.
Prospero clients to get their cash back
Clients of shuttered foreign exchange trader Prospero Markets, whose managers were involved in a huge money laundering sting last year, look likely to get their money back.