Why the Crown (ASX:CWN) share price crashed 10% lower today

Here’s why the Crown Resorts Ltd (ASX:CWN) share price is crashing lower on Monday and is the worst performer on the ASX 200…

| More on:
three sad face icons on a gaming machine

Image Source: Getty Images

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.

What now?

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.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Fallers