Australia’s financial intelligence agency has appointed external auditors to examine the anti-money laundering (AML) and counter-terrorism financing (CTF) compliance of two casinos - one in Queensland and the other in the Northern Territory - after identifying oversight weaknesses in both operations.
The Australian Transactions Reports and Analysis Centre (AUSTRAC) has ordered audits of The Ville Resort-Casino in Townsville and Mindil Beach Casino Resort in Darwin, with both venues being assessed for compliance with the AML/CTF Act.
Formerly known as Jupiters Hotel and Casino before undergoing major redevelopment and rebrand from 2015 to 2017, The Ville Resort-Casino is owned by Morris Group, which is run by Chris Morris - the founder of ASX-listed stock transfer company Computershare (ASX: CPU).
For the past six years, Mindil Beach Casino Resort has been owned and operated by Delaware North, which acquired the venue - branded in 2014 as SKYCITY Darwin - from SkyCity Entertainment Group (ASX: SKC) in a deal worth $188 million. Based in Buffalo, New York, Delaware North is a concessions giant operated by American billionaire businessman Jeremy Jacobs.
SkyCity itself was handed down a $67 million fine last year following a successful prosecution by AUSTRAC which found the company did not carry out appropriate ongoing customer due diligence under the AML/CTF Act at its Adelaide casino.
An ongoing AUSTRAC probe also casts a shadow over beleaguered casino and resorts group The Star Entertainment (ASX: SGR), whose shareholders will vote next on a proposed majority buyout from US company Bally's and Australian pubs baron Bruce Mathieson.
The latest audits will assess whether each casino is maintaining an AML/CTF program that identifies, mitigates, and manages money laundering and terrorism financing (ML/TF) risks, conducting appropriate ML/TF risk assessments, and ensuring boards and senior management maintain effective oversight of the program.
AUSTRAC CEO Brendan Thomas says the far-north casinos operate gaming machines and table games which come with an elevated risk.
“Although they may be smaller than entities such as Crown Resorts and The Star, like all gambling venues, The Ville and Mindil Beach face heightened risk of exploitation by criminals,” Thomas says.
“AUSTRAC is serious about driving illicit money out of the gambling industry in Australia and making sure businesses that facilitate gambling have strong money laundering controls.
“This action follows major actions we have taken against other casinos, Crown Resorts, Sky City, and The Star and online bookmakers, Entain, Sports bet and Bet 365.”
The audits will also assess whether the businesses are monitoring customers with a view to identify, mitigate and manage the money laundering or terrorism financing risks they face. Both audits will be at The Ville’s and Mindil Beach’s expense.
“My message to boards and CEOs of gambling business, including pubs and clubs with gaming machines, is to make sure you comply with Australian money laundering laws and take your responsibility to tackle money laundering seriously; we are watching and we will take further action,” Thomas says.
“Money laundering harms our economy and it allows criminals to profit from some of the most awful crimes - we need to stamp it out.”
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