The Crown Resorts Ltd (ASX: CWN) share price has started the week in terrible form and is sinking notably lower on Monday.
At one stage today the casino and resorts operator’s shares were down over 10% to $8.06.
The Crown share price has recovered a touch since then, but remains the worst performer on the S&P/ASX 200 Index (ASX: XJO) with an 8% decline to $8.25.
Why is the Crown share price crashing lower today?
Investors have been selling Crown’s shares on Monday after the release of an announcement this morning.
As you might have guessed from its share price reaction, it wasn’t a positive one. Crown revealed that AUSTRAC has been in contact with it in relation to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.
According to the release, the government financial intelligence agency has informed the company that it has identified potential non-compliance by Crown Melbourne with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and the Anti-Money Laundering and Counter-Terrorism Financing Rules 2007.
What is Crown alleged to have done?
The release explains that the potential non-compliance includes concerns in relation to ongoing customer due diligence.
In addition to this, there are concerns over its adoption, maintenance and compliance with an anti-money laundering and counter-terrorism financing program.
The company notes that these concerns were identified in the course of a compliance assessment that commenced in September 2019 and focused on Crown Melbourne’s management of customers identified as high risk and politically exposed persons.
Management revealed that the matter has been referred to AUSTRAC’s Enforcement Team, which has initiated a formal enforcement investigation into Crown Melbourne’s compliance.
It advised that Crown Melbourne will respond to all information requests in support of the investigation and intends to fully co-operate with AUSTRAC in relation to this process.