AUSTRAC Says Casinos Responsible for Overseeing Junket Operators

AUSTRAC’s CEO, Nicole Rose, has said that the regulatory onus is on individual casinos to ensure that junket operators do not pose risk to AML compliance.

Australian Financial Fraud Squad Says Casinos Must Regulate Junkets

‘Do not pass business responsibility onto regulators,’ this is the unambiguous message Nicole Rose, head of Australia’s financial fraud squad or AUSTRAC had to send when commenting who is in charge of ensuring that junket operators remain on the straight and narrow.

Individual casinos must be responsible for any foot traffic brought to them y junket operators, rather than try to pass the baton onto regulators.

Rose delivered her statement during a Senator hearing held at the NSW Independent Liquor and Gaming Authority (ILGA) looking into Crown Resorts’ own regulatory failings. According to News Corp, a media outlet, Rose argued that AUSTRAC is not nor it should be tasked with the regulation of junket tour operators.

The regulatory onus remains entirely on the industry that has to fulfill pre-determined AML and CTF obligations. Rose’s view has been endorsed by other authorities, including the Federal Court, considering the industry more than capable – if it’s willing – to tackle any risks related to its own assets.

Regulatory Clouds Gather Over Crown Once Again

Now, Rose and AUSTRAC will pursue another probe into Crown Resorts to determine if the company broke anti-money laundering rules. This comes on the news that the company had shortcomings in its compliance policies.

According to the Regulatory Operations branch at AUSTRAC, Crown Resorts has not been able to satisfy in full customer due diligence nor comply with anti-money-laundering and counter-terrorism financing, and more.

AUSTRAC noted that irregularities were first noticed back in September 2019 during compliance assessment focused on Crown Melbourne’s “management of customers identified as high-risk and PEPs.”

An investigation into Crown’s suitability to hold a license for its AU$2.2 billion Crown Sydney casino is still ongoing as ILGA collects evidence and will look for a fair ruling in the matter.