The disciplinary proceedings are related to the Victorian Royal Commission\u2019s findings on Crown’s China Union Pay process.<\/p>\n\n\n\n\n\n\n\n
Australia.- The new Victorian Gambling and Casino Control Commission (VGCCC) has announced one of its first actions \u2013 disciplinary action against Crown Resorts. The regulator is taking action over findings that emerged in the state’s Royal Commission into Crown on its China Union Pay process used to evade Chinese currency restrictions and enable the illegal transfer of funds.\u00a0<\/p>\n\n\n\n
The VGCCC, which was launched on January 1, could impose a fine up to a maximum of AU$100m<\/strong>, modify Crown’s casino licence, censure the casino operator and order it to take rectification steps.<\/p>\n\n\n\n Fran Thorn<\/a>, VGCCC chair, said: \u201cI welcome the legislative amendments which impose stronger regulatory obligations on Crown and provide the VGCCC with greater enforcement powers. These powers are needed to deter Crown from engaging in the conduct that was revealed during the Royal Commission.<\/p>\n\n\n\n \u201cAs a first step, we are acting on the Royal Commission\u2019s findings that Crown\u2019s China Union Pay process breached important Victorian regulatory obligations, was illegal and constituted serious misconduct.\u201d<\/p>\n\n\n\n The VGCCC said it will make further announcements after reviewing Crown’s response<\/strong>. Other matters highlighted by the royal commission will trigger further disciplinary proceedings.<\/p>\n\n\n\n Between 2012 and 2016, Crown Resorts used the Chinese bank card China UnionPay to allow international guests to use funds to play games at Melbourne casinos, according to the royal commission.<\/p>\n\n\n\n Crown Towers Hotel provided room bills to customers, falsely claiming that the hotel provided services. Customers used their China UnionPay card to pay the bill and receive a receipt confirming payment. Customers then, accompanied by Crown VIPs, brought the vouchers to the cage and exchanged them for cash or tokens.<\/p>\n\n\n\n Judge Raymond Finkelstein<\/strong>, who led the state of Victoria\u2019s inquiry declared\u00a0Crown Resorts unsuitable to hold a licence<\/a>\u00a0for its Crown Melbourne casino.\u00a0<\/strong>However, the operator was allowed to keep its licence under stricter conditions.<\/p>\n\n\n\n An New South Wales investigation revealed that the Star Entertainment Group was running a similar system there\u00a0allowing transfers totalling AU$900m<\/a>.<\/p>\n\n\n\n