Money Laundering Probe Fuss
Australia has expanded the scope of an ongoing investigtion
over a potential breach of money laundering laws.
National Australia Bank (NAB) and casino operator
Crown Resorts have become the subjectsof the initial
investigation. The biggest casinos' owners in major
Australian cities, including Star Entertainment Group
and SkyCity Entertainment Group, are also under scrutiny.
This investigation presents a shocking blowback to
the gambling industry, impacting most betting
companies operating in the country that has struggled
with pandemic effect and enhanced regulatory examination.
Is The Money Laundering Probe About?
The anti-money laundering regulator has investigated
all the related parties formally since June 7, 2021.
Crown Resorts have been under investigation initially
for potential breaches at its renowned casino in Melbourne;
however, the current development has also included
its Sydney casino.
series of investigations are part of a comprehensive
campaign by authorities to target organized crime
revenue. The main focus is on financial institutions,
casinos, and cryptocurrency exchanges.
has already been under extreme pressure earlier this
year. A landmark inquiry found the company unfit
for a gaming license in New South Wales. The issue
arises after the company planned to open the newly
built casino in Sidney, costing AUD 2.2 billion in
the making. The inquiry exclaims that the company
had been facilitating money laundering and putting
employees at risk of arrest in foreign jurisdictions.
Crown is also under accusation of establishing business
relationships with criminal groups in other Australian
to the current investigation, Crown has evaded any
charges of illegal activities taking place around
its casinos. Their casinos have allegedly been hotspots
for money laundering and outing for high-profile Chinese
gamblers associated with criminal groups.
Star Entertainment is also under scrutiny for suspected
breaches of customer due diligence laws. This event
might have an immediate impact on the plan to buy
out rival Crown for a deal of AUD 9 billion. In the
aftermath of the scandal, Crown shares took a 1.5
percent fall in the overall market; meanwhile, Star
shares were down by 3 percent.
Zealand-based company SkyCity runs a casino in Australia;
but, it has also been included in the investigation.
The regulator investigates SkyCity's casino in Adelaide
due to potential management negligence to identify
high-risk and politically exposed customers, including
those who hold a prominent public position or role
in a government body or international organisation,
either in Australia or overseas. NAB has added that
the focal point of the probe is weak customer
identification procedures and background checks.
Is The Implication Of The Fuss?
has witnessed record penalties as a result of money
laundering breaches in recent history. Fines are expected
to any parties involved and proven guilty as charged.
September 2020, Australia's Westpac Bank was fined
AUD 1.3 billion for the nation's most high-profile
breach of money laundering laws to date. The Commonwealth
Bank also paid AUD 700 million in a money laundering
case in 2018.
casinos currently under the spotlight, the authority
aims to actively address the significant risks of
money laundering through gambling industries, support
proper regulation, and encourage education of the
gambling sector. Gamblers casual or professional
are expected to be more careful and mindful
in choosing reliable casinos or bookmakers before
placing any bets. Trusted betting guides like SmartBettingGuide
might help to decide which betting sites are trustworthy