ABC Australia
Melbourne’s Crown casino faces fines of up to $100 million for a scheme that allowed the illegal transfer of funds from China, Victoria’s new gambling watchdog has said.
Key points:
- The “China Union Pay process” skirted around Chinese laws to prevent large sums being spent overseas
- The scheme was highlighted in the royal commission into Crown, which found it breached Victorian law
- The disciplinary action is the first major action launched by the Victorian Gambling and Casino Control Commission
The Victorian Gambling and Casino Control Commission (VGCCC) on Tuesday told Crown Melbourne Limited it had launched disciplinary proceedings into what was dubbed the “China Union Pay process”.
The process was uncovered at Victoria’s royal commission into Crown’s licence, which found the casino allowed foreign punters to use a Chinese-based bank card in order to gamble in Melbourne.
Between 2012 and 2016, Chinese nationals could not transfer more than $US50,000 per year out of the country.
The royal commission found that during that time, Crown devised a scheme where it would issue false receipts for hotel services.
The guest would then pay the bill using a China Union Pay bank card, be given a voucher, and immediately exchange that voucher for gambling chips.
The scheme was found to be in breach of the Casino Control Act.
The Royal Commission into the Casino Operator and Licence ran in mid-to-late 2021 after years of allegations of wrongdoing uncovered by the media and whistleblowers.
It heard what commissioner Ray Finkelstein called an “alarming catalogue of wrongdoing”, including evidence of links to criminal gangs and repeated breaches of money laundering laws and the casino’s contract with the state.
The final report recommended Crown Melbourne should be given a two-year grace period to correct its “disgraceful” conduct or face losing its licence.
https://www.abc.net.au/news/2022-04-05/crown-casino-facing-fines-watchdog-launches-action/100968278
