CEO of the Criminal Intelligence Commission Michael Phelan appears before Senate estimates.Credit:Dominic Lorrimer
He said his agency and its “intelligence and regulatory partners are aware and actively addressing the significant risks of money laundering through casinos,particularly through casino junkets.”
The ACIC is the most powerful and secretive law enforcement body in the nation and works with state and federal police,as well as spy agencies ASIO and ASIS,to counter high-level risks to Australia.
“The infrastructure supporting junket operations both internationally and within Australia provides opportunities for exploitation by serious and organised crime to conceal and legitimise criminal wealth,” Mr Phelan said.
The “Special Investigation” announced by Mr Phelan comes as Crown played down the scandal that has exposed its partnerships with some junkets backed by suspected Chinese organised crime figures and Chinese Communist Party influence agents.
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Crown Casino in Melbourne is currently providing a high-roller room to a junket operator,SunCity,which has been linked to organised crime by Australian and Hong Kong authorities.
Mr Phelan revealed how his agency has already uncovered “underground banking systems” moving gambling funds out of China in breach of Chinese government laws preventing capital outflow.
He said this movement of funds was “also likely used to … facilitate the concealment of criminal wealth.”
This week,The Age,The Sydney Morning Herald and60 Minutes have revealed howTom Zhou,who has been one of Crown Melbourne's junket partners,is a wanted Interpol fugitive accused of major financial crime in China. Another,Simon Pan,owns a brothel that has been implicated in human trafficking. The revelations also focused on Crown’s ongoing relationship with the SunCity junket,which is believed to be a major focus of investigators across Australasia.
Given the international scale and cross-jurisdictional nature of the criminality under investigation,the ACIC will continue to work in cooperation with both international and domestic law enforcement agencies.
Australian Criminal Investigation Commission CEO Michael Phelan
In his statement,Mr Phelan said “the structure of junket operations enables opaqueness around the source of beneficial ownership of funds … and represents a significant money laundering risk.”
“In the junket environment,the difficulty in verifying beneficial ownership of junket funds is due primarily to the junket operator being the customer of the casino rather than the participants,in addition to the majority of junket operators and participants being non-Australian residents.”
Mr Phelan also revealed that ACIC was working with overseas law enforcement and intelligence agencies to combat the problem.
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“Given the international scale and cross-jurisdictional nature of the criminality under investigation,the ACIC will continue to work in cooperation with both international and domestic law enforcement and regulatory agencies,” he said.
“It would not be appropriate to comment further on these activities at this time.”
On Wednesday,Crown sought to place an advertisement in newspapers rebutting the media revelations about its dealings with junkets. It described the reporting as a “deceitful campaign” against Crown and also insinuated — without basis - thata Crown whistleblower who exposed the company’s misconduct in China may have been paid to give an interview. The whistleblower was not paid.
"Crown itself has a robust process for vetting junket operators,including a combination of probity,integrity and police checks,and Crown undertakes regular reviews of these operators in the light of new or additional information,"Crown said in its advertisement.
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