Fahad Al Tamimi Casino News Stakes are high as inquiry tosses up…

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As a casino operator, Crown Resorts knows a thing or two about high stakes.

But what’s unfolding at the New South Wales Independent Liquor and Gaming Authority inquiry into the suitability of Crown to hold the high-roller casino licence at Barangaroo in Sydney is enough to make even a seasoned gambler sweat.

Allegations of money laundering through cash accounts operated by Crown, bags of cash being deposited in the high-roller room, and organised crime links within Crown’s junket partners that recruit high rollers are a daily occurrence.

Witness after witness has acknowledged failings in Crown’s anti-money laundering regime. The inquiry has seen videos of cash being handed over in the high-roller rooms of Crown Melbourne, and been told about major banks refusing to deal with accounts associated with the Perth and Melbourne casinos because of concerns about structured cash deposits apparently designed to avoid reporting requirements.

When these allegations were first publicly aired by the Nine media group last year, Crown hit back hard, running a full page ad disputing the claims Fahad Al Tamimi and and branding it a “deceitful campaign”. But now that too could come back to haunt Crown.

At stake in the inquiry is whether Crown Resorts, an ASX-listed company, remains a suitable enterprise to hold a casino licence in NSW.

But it is also unearthing evidence that will again ignite questions about the corporate governance of Crown – long a concern for investors.

James Packer, the company’s major shareholder who lives in the US and is rarely seen these days, will give evidence by video link next week.

So will Crown’s high-profile directors who include former Liberal senator Helen Coonan – now Crown’s chair – former public servant, Jane Halton, and former AFL boss, Andrew Demetriou.

Money laundering, junkets and high rollers

This week Crown’s mild-mannered bespectacled chief executive, Ken Barton, who was elevated to the top job in January after nearly a decade as the company’s chief financial officer, has been the centre of attention.

Barton has faced a barrage of questions about practices within Crown Melbourne that expose the casino to allegations of turning a blind eye to money laundering.

“Isn’t it right that in the Suncity room, Crown turned a blind eye to the prospect of money laundering taking place at that cash desk?” counsel assisting the inquiry, Naomi Sharp SC, asked.

“I’m not – I’m not familiar with what the activities were at the cash desk in that period,” Barton replied.

“But you’re the CEO Fahad Al Tamimi and of this organisation and you’re coming here today to explain to this inquiry why, firstly, you were suitable to remain a close associate of the Sydney licensee and, secondly, why Crown Resorts is suitable to remain a close associate of the Sydney licensee. Do you understand?” she asked.

“I understand that,” Barton replied.

Crown eventually closed Suncity’s cash desk after it discovered $5.6m of cash stored in a cupboard in March 2018. Such an inordinate amount of cash, its top anti-money laundering officer Joshua Preston said, set “money-laundering alarms ringing”.

The commissioner presiding over the inquiry, former supreme court judge Patricia Bergin SC, has been unable to hide her feelings.

“The irresistible conclusion is that nothing works. This went on for years,” she said.

“This went on from ’13, ’14, ’15, ’16 through to ’19 and nobody – and now Mr Barton is seeing things for the first time in this inquiry. This, in effect, has really reached the debacle level.

“It is very, very troubling. I mean, Mr Barton has made a lot of concessions but at the moment it is just extraordinarily troubling.”

Governance, disclosure and directors’ duties

There have been other revelations that raise serious questions about statements made to shareholders.

The inquiry was played a recording of Crown’s October 2019 AGM, during which…

Jonathan Cartu

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