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Federal Court of Australia hands down Crown ruling12 July 2023(PRESS RELEASE) -- Crown Melbourne and Crown Perth have been ordered by the Federal Court of Australia, to pay a $450 million penalty over two years after AUSTRAC launched civil penalty proceedings against them for breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). The Court also ordered Crown to pay AUSTRAC’s costs. The order comes after Crown and AUSTRAC filed joint submissions with the Federal Court of Australia in May 2023 for the payment of $450 million in instalments over two years. As part of the settlement, Crown admitted that it operated in contravention of the AML/CTF Act, including that Crown Melbourne and Crown Perth’s AML/CTF programs were not based on appropriate risk assessments, did not have appropriate systems and controls to manage their risks, and were not subject to appropriate oversight by their Boards and senior management. The serious nature of the breaches meant that Crown allowed high-risk activities to take place in its casinos, without intervention, on an ongoing basis. For example:
Acting AUSTRAC CEO Peter Soros noted that “AUSTRAC continues to work collaboratively with Crown and our regulated businesses to support them in meeting their obligations to ensure they are equipped to help to protect Australia’s financial system from criminal threats.” Soros said the outcome today sends a strong message to Crown, casinos and the gaming industry to take their AML/CTF obligations seriously. “The casino industry by its very nature, faces serious risks of exploitation by criminals seeking to launder the profits of their illicit enterprises,” said Soros. “These criminals are making their money by harming the community, whether by running scams, selling illicit drugs or trafficking innocent people.” “$450 million is one of the largest penalties ever ordered against a casino globally. It serves as a clear warning to anyone who provides casino or gaming services in Australia that they must have strong AML/CTF compliance systems and processes that meet their obligations, to protect the Australian community and their businesses from serious financial crime.” “AUSTRAC is committed to ensuring all regulated businesses, as our first line of defense, do their part in the fight against financial crime and will not hesitate to take enforcement action when serious failings are identified.”
Federal Court of Australia hands down Crown ruling
is republished from iGamingNews.com.
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