Crown Melbourne hit with federal investigation into potential money laundering breaches
Crown Resorts' has lost a tenth of its value after Australia's financial watchdog announced it would be conducting an investigation into alleged money-laundering operations at its Melbourne Casino.
In just two hours of trade on the ASX, Crown Resorts Limited's share price fell from $8.80 a share to $8.15, a stunning drop of around 9.19 per cent.
It takes Crown to a new six-month low and bumps the company's yearly losses up to an eye-watering 30 per cent.
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Crown Resort's stock price has taken a beating over news of potential money laundering breaches. Google Finance
The share plunge comes in tandem with an announcement Crown made to shareholders to inform them of an impending AUSTRAC enforcement investigation.
AUSTRAC informed Crown that it had identified potential non-compliance by its Melbourne Casino in abiding to anti-money laundering and counter-terrorism financing rules.
The casino giant said the concerns were largely over the record-keeping of the operation.
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The casino giant said the concerns were largely over the record-keeping of the operation. AAP
"The potential non-compliance includes concerns in relation to ongoing customer due diligence, and adopting, maintaining and complying with an anti-money laundering / counter-terrorism financing program," Crown told shareholders.
"These concerns were identified in the course of a compliance assessment that commenced in September 2019 and focussed on Crown Melbourne's management of customers identified as high risk and politically exposed persons."
Crown Melbourne has said it will respond to all information requests and will cooperate fully with the investigation.
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Crown Melbourne has said it will respond to all information requests and will cooperate fully with the investigation. Getty
The investigation comes as Crown nears the end of an inquiry in New South Wales into claims it turned a blind eye to money laundering operations run by organised crime.
Crown Resorts Limited is scheduled to hold its Annual General Meeting on Thursday.
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