Crown Resorts faces $450 million penalty for its failings
Crown Resorts is likely to pay a $450 million fine over its anti-money laundering and counter-terrorism failings at Crown Perth and Crown Melbourne.
The penalty will be one of the largest ever financial penalties in Australian corporate history. It is around 5 per cent of Crown’s last listed market capitalisation before the $8.9 billion Blackstone Capital acquisition in May last year.
Crown Resorts chief executive Ciaran Carruthers apologised for the Group’s past indiscretions.
“Today marks a significant step in the process, and we are pleased to have reached this agreement with AUSTRAC, noting that it is still subject to consideration and approval by the Federal Court, and we await that decision,” Carruthers said.
“The company that committed these unacceptable, historic breaches is far removed from the company that exists today. The Crown of today is committed to harm minimisation and becoming the world leader in the delivery of safe gambling and entertainment.”
Crown is currently implementing its “Future Crown” reform program.
“We take seriously the responsibility we have to the community, to law enforcement, to our industry and stakeholders to ensure that we continue to comply with our anti-money laundering and counter-terrorism financing obligations,” Carruthers said.
Crown rival Star Entertainment Group is also facing a large penalty for similar breaches. Star recently laid off staff due to poor casino earnings in Sydney and Queensland.
Star has set aside a provision of $150 million for any potential penalty AUSTRAC enforces.
AUSTRAC chief executive Nicole Rose praised Crown’s response to its failings, but said the sector was at risk of exploitation.
“Crown’s contraventions of the AML/CTF Act [Anti-Money Laundering and Counter-Terrorism Financing Act] meant that a range of obviously high-risk practises, behaviours and customer relationships were allowed to continue unchecked for many years,” Rose said.
“Crown has sought to respond to the failures identified in these proceedings by enhancing its approach to money laundering/terrorism financing risk management and investing in its financial crime compliance.”
Crown has already been given a record-breaking $120 million penalty by the Victorian Gambling and Casino Control Commission for failing to encourage responsible gaming at its Melbourne casino.
Jonathan Jackson, 31st May 2023
