The Australian gambling behemoth, Crown Resorts, experienced a sharp stock devaluation exceeding 9% after accusations of illicit financial activities surfaced. The corporation is currently embroiled in a probe concerning possible infringements of anti-money laundering and terrorism financing regulations, potentially leading to substantial penalties and jeopardizing its operational permits for its gaming establishments in Perth and Melbourne.
Notwithstanding these legal entanglements, Crown is proceeding with the development of a new lodging establishment in Sydney, with an anticipated inauguration in December.
Further compounding their difficulties, Crown has also encountered scrutiny regarding its interactions with high-stakes gamblers, particularly at its Melbourne gaming venue. The enterprise purportedly engaged in transactions with “junket organizers” associated with Asian criminal organizations, a subject former Chief Executive James Packer has even provided testimony on.
In a recent turn of events, Crown disclosed that it had been approached by AUSTRAC, Australia’s financial crime regulatory body. AUSTRAC expressed apprehensions regarding potential infractions in “several domains,” encompassing insufficient customer due diligence and deficiencies within its anti-money laundering and terrorism financing framework.
Validating the ongoing inquiry, AUSTRAC affirmed that it originated from a compliance evaluation commenced in September of the preceding year.
Shares of ‘Crown Resorts’ experienced a sharp decline, tumbling more than 9% and currently facing difficulty remaining above the $8 mark.
