Crown Resorts has reached a settlement with AUSTRAC to pay a $450 million penalty for past violations of anti-money laundering laws. 

In acknowledging its wrongdoing, Crown has admitted to operating in violation of the Anti-Money Laundering and Counter-Terrorism Financing Act. 

The company acknowledged its failure to assess the risks of money laundering and terrorism financing at its casinos and the absence of adequate risk-based systems to mitigate these risks. The breaches occurred at Crown's casinos in Melbourne and Perth.

Crown has also conceded that it lacked an appropriate transaction monitoring program that suited its business operations and failed to conduct sufficient ongoing customer due diligence on customers with high money laundering risks.

Crown Resorts expressed its recognition of the significance of the decision in rectifying past mistakes. 

“We take seriously the responsibility we have to the community, to law enforcement, to our industry and stakeholders to ensure that we continue to comply with our AML/CTF obligations,” CEO Ciarán Carruthers said.

This penalty, pending approval from the Federal Court, would be the third-largest fine in Australian corporate history. 

Previously, Westpac was fined $1.3 billion, and Commonwealth Bank faced a $700 million penalty for breaches of anti-money laundering laws.

Crown Resorts has faced scrutiny through royal commissions and inquiries in Victoria, Western Australia, and New South Wales. 

The Bergin inquiry revealed that Crown had facilitated money laundering and collaborated with operators tied to organised crime, rendering the casino unsuitable for holding gaming licences in all three states.

AUSTRAC CEO Nicole Rose highlighted the gravity of Crown's violations, saying; “Crown’s contraventions of the AML/CTF Act meant that a range of obviously high-risk practices, behaviours, and customer relationships were allowed to continue unchecked for many years”. 

The final penalty amount is still subject to court approval, with a hearing scheduled for July 10 and 11. 

Crown Resorts was acquired by global private equity group Blackstone for $8.9 billion in February last year, with the takeover agreement allowing Blackstone to withdraw from the deal if the penalty exceeded $750 million.

In previous incidents, Crown was fined $120 million by the Victorian Gambling and Casino Control Commission (VGCCC) for responsible service breaches and an additional $30 million by the Victorian gambling watchdog for allowing customers to cash bank cheques made out to themselves, which heightened gambling harm and potentially facilitated money laundering by criminal elements.