Operator News

Australia – Crown defends its junket links following damning 60 Minutes report

By Phil - 29 July 2019

Crown Resorts has defended its stance on using junkets following claims from The Age and The Sydney Morning Herald newspapers, along with broadcaster 60 Minutes, that it deployed junket operators connected to drug traffickers in China to bring Chinese VIP customers to its Australian casinos.

Crown stated it had a ‘robust process for vetting junket operators’ that are regularly reviewed. It stressed it had not knowingly exposed its staff to the risk of imprisonment in China. 60 Minutes said the episode would feature ‘a story so important it can’t be missed’ which was ‘set to rock the foundations of Australia.’

The TV programme suggested that Crown had ‘developed a business model based on luring rich Chinese, known as VIP high rollers, to its casinos in a country where gambling and promoting gambling are illegal.’

Crown said: “Crown takes ‘legal and regulatory responsibilities very seriously and has a comprehensive Anti-Money Laundering and Counter-Terrorism Financing Program. Crown takes its regulatory obligations very seriously and works closely with all of its regulatory agencies, including law enforcement, both state and federal. In this respect, Crown provides a range of information in a proactive manner consistent with its regulatory obligations, including reporting all transactions over A$10,000 (MOP55,618/US$6,909) and suspect transactions of any value. Crown is subject to the various non-disclosure provisions within the Anti-Money Laundering/Counter-Terrorism Financing legislation and is not at liberty to disclose details of transactions it has reported’.

“Crown has a robust process’ for vetting junket operators with whom it deals and that it undertakes regular ongoing reviews of these operators in the light of new or additional information that comes to its attention.

In relation to the accusations made about triad connected junkets, Crown said it couldn’t talk on the matte as there was a class action being pursued in relation to the detentions.

‘Crown does not wish to comment on the matters in issue in that action, other than to say that it denies any allegation that it knowingly exposed its staff to the risk of detention or conviction in China, it said.

The TV report claims Crown had links to Tom Zhou, an alleged underworld lord who was an international fugitive. It claims Crown gave Zhou access to private jets and hotel suites, as well as helping his associates get Australian visas, with former Border Force commissioner Roman Quaedvlieg telling 60 Minutes he was even encouraged by MPs to speed up Chinese high-roller visa applications. It also links Crown to VVIP” Ming Chai, a former official and cousin to Chinese leader Xi Jinping.

Independent senator Jacqui Lambie has demanded a parliamentary inquiry into Crown.

“I was appalled by the revelations on 60 Minutes last night although it didn’t surprise me,” Senator Lambie said. “It would appear that the government and ministers knew what was going on and were handing out visas at the same time.

“This is about money laundering and therefore criminal charges should apply to all involved. And the bigger question is what does the AFP intend doing about this? Nobody is above the law. This is another reason why we need a federal ICAC with teeth.”

The Victorian Commission for Gambling and Liquor Regulation said: “We are continuing to consider the well-publicised events regarding Crown’s international commission-based business and its international sales team in China.”
The Gaming and Wagering Commission of Western Australia, added: “When any issues related to Casino regulation under our act are raised with the regulator they are investigated, as has happened in the past and will continue to do so.”

In a statement, Austrac said it is “actively addressing the significant risks of money laundering through casinos, particularly through casino junkets.” The agency said it wouldn’t comment further on any operational activities.
Independent lawmaker Andrew Wilkie, a critic of the gambling industry, called on the Australian government to establish a parliamentary committee.

“This has reached a point where the Australian government has to pay attention,” Mr. Wilkie said. “I would hope the Prime Minister and the Opposition Leader would see the sense in a parliamentary response. This is a lot more now than allegations about one little casino. It’s multi-jurisdictional, it’s multi-agency, it’s international. This is very much something that the Australian government and the Australian Parliament should have an interest in.”

“I think that would be one of the things that a parliamentary inquiry could explore – the degree to which there is a cultural or systemic problem among Australia’s casino industry,” he added. “But even if there is not a problem in other casinos, Crown is in some ways Australia’s most iconic casinos, and these allegations are so serious. We now know we can’t rely on the Victorian gaming regulator. We can’t rely on the Victorian police. It seems we now can’t rely on consular officials, if these allegations are correct. I would hope that all of the individual agencies that are involved in this are today reviewing their circumstances and the allegations relevant to them,” he said.