Australias financial watchdog, AUSTRAC, clarified that casinos, not governing bodies, bear the responsibility for guaranteeing the anti-money laundering adherence of junket organizers. In essence, gaming enterprises are accountable for confirming these intermediaries who attract VIP players, particularly from abroad, are adhering to regulations.
This declaration arises following an investigation into Crown Resorts by the Independent Liquor and Gaming Authority (ILGA) in New South Wales, which claimed money laundering was transpiring at Crown’s Melbourne casino via these junket activities. This has ignited a comprehensive discussion regarding who is truly overseeing operations.
Previously, the Victorian gambling regulator asserted that anti-money laundering fell under AUSTRAC’s purview. However, AUSTRAC’s director, Nicole Rose, clarified: AUSTRAC does not directly oversee these junket organizers. She stressed that it’s the sector’s obligation to ensure their compliance with anti-money laundering and counter-terrorism financing legislation.
While some contend that relaxed regulations might entice more high-stakes gamblers, Rose believes the industry possesses the capacity to manage these hazards.
Nevertheless, not everyone is persuaded. Labor Senator Kristina Keneally expressed apprehensions about legal vulnerabilities, highlighting the possibility of individuals entering Australia through these junkets with funds of ambiguous origin and subsequently distributing them to unidentified persons. This raises significant concerns about potential supervisory gaps.
While Rose reaffirmed that domestic regulations are not applicable to international firms, the matter of potential money laundering via junkets functioning within Australian casinos persists as a grave worry.
Australias financial intelligence unit, AUSTRAC, has verified that regulators lack cohesion and collaboration in supervising gambling intermediaries. Rose, whose complete name and title are necessary for me to provide full context, feels that mandating licenses for these businesses is a move toward resolving this problem.
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