Crown Resorts plagued by allegations of money laundering and visa fraud

The investigation into fraudulent behaviour with regard to Crown Resorts, continues to make headlines.

As a backdrop, in 2010 a Department of Foreign Affairs and Trade (DFAT) official warned Crown Resorts of fraudulent visa applications made by Chinese citizens to visit the casinos.

The inquiry into the events found that a DFAT official informed Crown that only a few of the applicants sponsored for these visa applications were part of a casino high-roller scheme.

“It appears that Crown has become a visa agent lodging for travel operators and junket agents. We continue to see significant levels of fraud in the case load,” the DFAT official told Crown. The official noted that 10 per cent of the applications lodged by Crown had been refused.

“This does not represent a low level of risk,” he added.

The inquiry led to the arrests of Crown staff in China in 2016.

Crown made headlines again last year, when according to media reports, Crown and the Australian Government had an arrangement that allowed Chinese high rollers to fast-track their Australian visa applications.

Accusation have also been made of Crown staff lobbyng Australian officials to expedite the release of hundreds of visas for SunCity, a junket operator accused of organised crime links.

This week, Barry Felstead, Crown’s Australian Resorts chief executive was asked about his meeting with Alvin Chau, SunCity’s promoter, at the opening of the junket operator’s VIP Room at Crown Melbourne in October 2014. Serious allegations about Mr Chau’s links to organised crimes were  raised in the media weeks earlier.

Mr Felstead was questioned as to whether he asked Mr Chau about the allegations at the opening but he said he didn’t think to ask at the time. He did state that Crown had done “more due diligence on Mr Chau than any other customer” and nothing unlawful was found.

Further questions were asked the major banks’ decisions to shut down Crown bank accounts used by patrons to deposit and withdraw gambling money. The banks are said to have acted in this way due to apparent large-scale money laundering.

It is alleged both Riverbank Investments and Southbank Investments, both of which Mr Falstead is a director, were used for the transfers.

Mr Felstead claims he was not aware these accounts were being used for money-laundering activities, and said he would think twice before he took a directorship such as this again.

“I would probably take a very different approach,’’ he said.

The inquiry continues.