business
Former Executives Fined for Breaches Linked to Casino Money Laundering
Two former executives at an Australian casino operator received fines and bans for failing to address money laundering risks. A federal court also criticized the corporate regulator for reaching lenient deals with other board members.
The Sydney Morning HeraldAudio version
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A federal court imposed penalties on two former executives of an Australian casino operator for their roles in failing to address money laundering risks.
The former chief executive received a $700,000 fine and a six-year ban from managing a corporation. The former legal chief was fined $400,000 and banned from managing a corporation for seven years. They were also ordered to pay 45 per cent of the regulator's legal costs.
The judge said he was not convinced the pair had insight into their wrongdoing. The court noted that the penalties were lighter than might have been expected given the conduct involved.
The judge criticized the regulator for accepting lenient deals with two other executives. He said he would have imposed different penalties except for those deals, which he called objectively generous. The regulator had alleged that board members breached their duties by paying insufficient attention to money laundering risks.
The court had previously dismissed that allegation against the board but described shortcomings in oversight. The company has faced multiple inquiries into its operations. Directors avoided liability after a review found they were misled by management about criminal links inside the business.
