The Financial Intelligence Unit in Australia, AUSTRAC, has emphasized that casinos bear the ultimate responsibility for ensuring their partners in high-roller gaming, known as junket operators, adhere to anti-money laundering regulations. This declaration underscores the burden placed on casinos to meticulously scrutinize and oversee these intermediaries to thwart financial wrongdoings.
This clarification follows an investigation into Crown Resorts conducted by the New South Wales Independent Liquor and Gaming Authority (ILGA). The inquiry revealed potential money laundering operations at Crown’s Melbourne establishment, specifically involving the conversion of currency to chips by junket operators.
Although some, including the Victorian Commission for Gambling and Liquor Regulation, have suggested that AUSTRAC should be tasked with policing junkets, AUSTRAC’s Chief Executive, Nicole Rose, firmly asserted this is not their mandate. Rose emphasized that enterprises themselves are obligated to guarantee compliance with anti-money laundering and counter-terrorism financing requirements, a stance upheld by Federal Court rulings. She acknowledged the possibility of insufficient oversight attracting affluent international gamblers but maintained the industry possesses the capacity to manage and evaluate its own hazards.
Nevertheless, apprehensions persist regarding potential vulnerabilities in current legislation. Labor Senator Kristina Keneally pointed out the possibility of individuals utilizing junkets to introduce funds of uncertain provenance into casinos and subsequently dispersing them to unidentified recipients, characterizing it as a “glaring deficiency” in regulatory measures. Rose countered that Australian regulations lack jurisdiction over entities operating outside the country.
The Australian financial intelligence unit, AUSTRAC, acknowledged a deficiency in collaboration and coordination among regulatory entities in combating financial crime. An individual, likely affiliated with the government or an expert in the field, named Ross, suggests that implementing mandatory licensing for intermediaries could be a measure to address this problem.
