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Crown Resorts and the Australian Transaction Reports and Analysis Centre (AUSTRAC) have agreed to a $450 million penalty over historical breaches of Australia's anti-money laundering laws at its Melbourne and Perth casinos.
- Crown Resorts and AUSTRAC have agreed that the penalty for the money laundering breaches is appropriate
- Crown's CEO says the company is committed to rectifying its past "failings"
- The $450 million penalty will require the final approval of the Federal Court in July
In reaching the agreement with the government financial intelligence agency, Crown has admitted that it operated in contravention of the Anti-Money Laundering and Counter-Terrorism Financing Act.
As part of the settlement, Crown has admitted that it failed to assess the money laundering and terrorism financing risks facing its casinos, and did not have appropriate risk-based systems in place to mitigate the risks.
Crown also admitted that it "did not have a transaction monitoring program that was appropriate to the nature, size and complexity of their business", and "did not conduct appropriate ongoing customer due diligence on a range of specific customers who presented higher money laundering risks".
In a statement, Crown Resorts said the decision marked "a significant step" in rectifying its "failings of the past".
"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," said Crown's CEO Ciarán Carruthers.
"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 AML/CTF obligations.
"There is no place for money laundering or terrorism financing at Crown or anywhere within our communities, and we will continue to invest in developing a sophisticated and robust framework, supported by the right capabilities to combat this illegal behaviour.
"We are committed to implementing these reforms to make Crown a better business and lift the standards for the entire industry."
If the fine is approved by the Federal Court, it would be the third-largest fine in Australian corporate history.
Westpac was fined a record $1.3 billion for more than 23 million breaches of anti-money laundering laws, while Commonwealth Bank was fined $700 million for so-called "intelligent deposit machines" that allowed millions of dollars to flow through to drug importers.
Crown has been the subject of royal commissions in Victoria and Western Australia, and a judge-led inquiry in New South Wales.
The Bergin inquiry found Crown facilitated money laundering and partnered with operators that had links to organised crime.
The casino was also found unsuitable to hold a gaming licence in all three states.
"Crown’s contraventions of the AML/CTF Act meant that a range of obviously high-risk practices, behaviours and customer relationships were allowed to continue unchecked for many years," AUSTRAC CEO Nicole Rose said in a statement.
"Crown has sought to respond to the failures identified in these proceedings by enhancing its approach to ML/TF risk management and investing in its financial crime compliance.
"We continue to work closely with Crown to ensure that their AML/CTF program and systems are compliant and fit for purpose into the future."
The final penalty is subject to approval, and could be varied by the Federal Court, with a hearing date set for July 10 and 11.
In February last year, Crown Resorts was purchased by global private equity group Blackstone for $8.9 billion.
Under the takeover terms, Blackstone was allowed to exit the deal if the penalty was greater than $750 million.
In November, Crown was fined $120 million by the Victorian Gambling and Casino Control Commission (VGCCC) over breaches of its responsible service obligations.
Crown was fined an additional $30 million by the Victorian gambling watchdog in April for allowing punters to cash bank cheques made out to themselves, exacerbating gambling harm and likely aiding "criminal infiltration by money launderers".