Crown ‘ failed to act over worries’
CROWN Resorts was “apathetic” about potential money laundering at its casinos for many years, failing to take seriously concerns raised by banks, an inquiry has heard.
And the company has put itself on a collision course with the gambling regulator in NSW, telling the inquiry it will not conclude its submissions rebutting damning allegations before the watchdog hosts a crucial meeting next week. At that meeting, officials will consider delaying the opening of Crown’s Sydney casino.
The inquiry has heard management at Crown never reviewed bank accounts of private subsidiaries Southbank Investments and Riverbank Investments despite suspicious deposits.
In concluding submissions on Monday, counsel assisting Scott Aspinall, SC, said some transaction descriptions were strangely referred to as school fees or loan purchases.
Mr Aspinall said there was evidence of “smurfing”, which is a tactic used to break down large sums into smaller transactions to evade financial reporting laws.
There were multiple payments under $ 10,000 – the threshold for mandatory reporting to the Australian Transaction Reports and Analysis Centre – by the same patron. Crown’s counsel, Neil Young, QC, said the allegation that the company was aware potential money laundering was occurring at either its Melbourne or Perth casinos would be refuted.
In 2014, ANZ was the first bank to raise red flags and ultimately closed the Southbank and Riverbank accounts, but Crown did not investigate why, Mr Aspinall said.
The culture within the casino group appeared “either ignorant of the risks or apathetic to the risks and the need to act in respect of them” – to turn a blind eye “or simply not caring either way”.
Problems identified by ANZ “were in no way addressed” because they had persisted for years, Mr Aspinall said.
It was difficult to accept ignorance could explain Crown’s inaction after ANZ flagged concerns, “and that leaves the option that it’s apathy or some sort of willingness just to take the risk that it is money laundering”.
Also on Monday, Mr Young told the inquiry Crown would not be able to commence its final submissions until next Tuesday, and they would take the rest of the week to present.
This means Crown will be in the middle of presenting its case defending its suitability to keep its Sydney casino licence when a special meeting of the gambling watchdog is convened on November 18.