- AUSTRAC has launched a formal enforcement investigation into Crown Resorts (CWN) Melbourne concerning potential breaches of anti-money laundering and counterterrorism financing laws
- In September 2019, AUSTRAC commenced a compliance assessment into the Melbourne branch’s management of high risk and politically exposed customers
- The assessment identified potential non-compliance with legislation in relation to ongoing customer due diligence and these concerns will be investigated further in the enforcement investigation
- CWN shares have dropped 8.8 per cent and been trading at $8.20
AUSTRAC has launched a formal enforcement investigation into Crown Resorts (CWN) Melbourne concerning potential breaches of anti-money laundering and counterterrorism financing laws.
The Australian Transactions Reports and Analysis Centre (AUSTRAC) is the federal government agency tasked with detecting, deterring and disrupting criminal abuse of the financial system.
In September 2019, AUSTRAC commenced a compliance assessment into Crown Melbourne relating to its management of customers identified as high risk and politically exposed persons.
The assessment identified potential non-compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and the Anti- Money Laundering and Counter-Terrorism Financing Rules 2007 in relation to ongoing customer due diligence.
These concerns will now be the subject of a formal investigation by AUSTRAC Enforcement.
In a statement, Crown said it will work with the regulator throughout the investigation.
“Crown Melbourne will respond to all information requests in support of the investigation and fully co-operate with AUSTRAC in relation to this process.”
The $6.09 billion market capitalisation company’s largest resort was significantly impacted in the 2020 Financial Year by the COVID-19 pandemic.
Earnings before interest, tax, depreciation and amortisation (EBITDA) from Crown Melbourne were down 37.9 per cent on the year before, however, the resort did still generate $381.8 million in EBITDA for the company.
CWN shares have dropped 8.8 per cent and been trading at $8.20 at 1:55 pm AEDT.