Three ASX-listed hospitality companies are under investigation by the Australian Transaction Reports and Analysis Centre (AUSTRAC) over concerns of possible money laundering.
Crown Resorts, The Star Entertainment Group and SkyCity informed shareholders that they had been informed by AUSTRAC’s Regulatory Operations Team that it has identified “potential serious non-compliance” with anti-money laundering and counter-terrorism financing laws in relation to Crown Perth, The Star Sydney and SkyCity Adelaide.
Crown was already under the microscope over potential breaches of the Casino Control Act through its hotel card processes at its Melbourne property between 2012 and 2016.
“Crown is continuing its investigations into these matters, including whether it may have breached other laws by reason of the hotel card process,” the company said in a statement.
The Star Sydney and SkyCity Adelaide are being examined over their management of “high risk and politically exposed” customers between 1 July 2015 and 30 June 2016, and between 1 July 2018 and 30 June 2019.
Both companies said in separate statements that they take their anti-money laundering obligations “very seriously” and will “fully co-operate with AUSTRAC” in relation to its inquiries.
The scrutiny could not have come at a worse time for Crown and The Star, with the two exploring the possibility of a merger.
Featured image source: iStock/kokkai