Crown (ASX:CWN) share price under pressure from AUSTRAC enforcement investigation

The Crown Resorts Ltd (ASX: CWN) share price has come under pressure this morning after the financial watchdog moved closer …

| More on:
A man recoils from his empty wallet in horror, indicating a major share price fall.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Crown Resorts Ltd (ASX: CWN) share price has come under pressure this morning after the financial watchdog moved closer to charging the casino operator.

The Crown share price slumped 1.7% to $12.48 at the time of writing when the S&P/ASX 200 Index (Index:^AXJO) slipped 0.2%.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) announced that it has identified potential serious non-compliance with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) laws by Crown Perth.

Bad news doesn't stop for Crown share price

AUSTRAC started its formal enforcement investigation against Crown Resorts in October last year. Today's news is a significant negative development against the Crown share price.

But it gets worse. Crown revealed that it may have also broken the law at its Melbourne casino.

"The Crown Board has recently received legal advice that a practice that existed at Crown Melbourne between 2012 and 2016 contravened section 68 of the Casino Control Act," said Crown in an ASX statement.

"This practice involved Crown receiving payment from debit or credit cards of international guests at Crown Melbourne's Crown Towers Hotel, with the funds then available to the patron for gaming at the Casino (the hotel card process)."

Fessing up to more bad behaviour

Section 68 of the Casino Control Act prohibits a casino operator from providing cash or chips from a patron's credit or debit card, which will be used for gambling.

Crown admitted that it transacted $160 million through such a process before terminating the practice in November 2016.

"Crown is continuing its investigations into these matters, including whether it may have breached other laws by reason of the hotel card process," added the company.

"Crown has notified the VCGLR and the Victorian Royal Commission of the matters the subject of this release.

"Crown will also notify all other relevant regulators and the Western Australian Royal Commission of these matters."

AUSTRAC investigates other ASX shares

AUSTRAC declined to comment further on this development when contacted by the Motley Fool as investigations are ongoing.

The regulator has also commenced enforcement investigations in Star Entertainment Group Ltd (ASX: SGR).

Crown has become a takeover target since its illegal practices were uncovered in New South Wales. Star Entertainment is one of the bidders for Crown as it is hoping to merge with its rival.

Why the NAB share price is underperforming too

Separately, AUSTRAC announced today that it initiated a formal enforcement investigation into the National Australia Bank Ltd. (ASX: NAB).  

The NAB share price is also underperforming other ASX big bank shares. The NAB share price fell 2.8% to $26.73 at the time of writing.

Should you invest $1,000 in National Australia Bank Limited right now?

Before you buy National Australia Bank Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and National Australia Bank Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 7 February 2025

Brendon Lau owns shares of National Australia Bank Ltd. Connect with me on Twitter @brenlau.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

a man holds his arms out and shrugs his shoulders as if indicating he doesn't know the answer to a question he's been asked.
Share Fallers

Why Guzman Y Gomez, Jumbo, PWR, and REA Group shares are crashing today

These shares are ending the week deep in the red. What's going on?

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why ANZ, Goodman, Magellan, and Super Retail shares are sinking today

These shares are having a very tough time on Thursday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Cleanaway, NAB, Step One, and Stockland shares are falling today

These shares are having a tough time on hump day. What's going on?

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Challenger, Reliance, Resimac, and SRG shares are sinking today

These shares are having a disappointing session on Tuesday. But why?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why AMP, Civmec, Cochlear, and LGI shares are falling today

These shares are ending the week in the red. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Graincorp, IAG, Pro Medicus, and Treasury Wine shares are falling today

These shares are having a tough time on Thursday. Let's find out why.

Read more »

A gambler at a casino bets a pile of chips on one number
Share Fallers

Down 78% in a year, time to throw in the towel on Star Casino shares?

Has the time come to cut and run?

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Amotiv, Dexus Industria, St Barbara, and Wildcat shares are sinking today

These shares are having a tough time on hump day. But why?

Read more »