Australias financial watchdog, AUSTRAC, is raising concerns about “junket” businesses in the gambling sector. A Sydney Morning Herald article reports that AUSTRAC cautions these enterprises have become significant targets for penetration and abuse by powerful and structured criminal syndicates with global connections.
For those new to the term, “junkets” are essentially collaborations between casinos and travel agencies. They aim to draw in gamblers, often affluent ones, to casinos with promises of a lavish and thrilling gaming experience. However, AUSTRAC’s evaluation of money laundering and terrorism financing hazards connected to junket tour activities presents a concerning outlook.
The agency emphasizes that money laundering poses a substantial danger within junket operations. They point to a critical weakness: patrons from foreign regions recognized for their high-risk backgrounds. This raises significant worries about the source of funds used for gambling and the possibility of illegal money being cleaned through these ventures.
This examination of junket practices originates from an investigation initiated earlier this year by the Independent Liquor and Gaming Authority (ILGA) in New South Wales. This investigation centered on the actions of Crown Resorts, a prominent entity in the Australian casino sector. The investigation’s effect has been considerable, causing a postponement in the launch of Crown’s Barangaroo casino in Sydney. Crown has also declared it will cease collaborations with junket businesses until receiving approval from gaming authorities.
AUSTRAC’s chief executive, Nicole Rose, is urging casinos to take prompt measures. She stresses the importance of evaluating the risk level linked to junket operations, reinforcing their safeguards, and reporting any questionable dealings to AUSTRAC. This declaration highlights the gravity of the situation and the need for decisive steps to safeguard the soundness of Australias financial framework.
She further emphasized that the problems presented by gambling promoters, who have connections to illicit finance and monetary wrongdoings that support grave unlawful actions such as narcotics and human smuggling, are harmful to our community.
At present, these gambling expeditions within the nation are on hold because of journey limitations associated with the global health crisis.
