Crown’s new chief of compliance has raised concerns about the competence of people previously running its Burswood casino, as the Perth Casino Royal Commission draws to a close.
Crown’s new chief of compliance has raised concerns about the competence of people previously running its Burswood casino based on evidence before the Perth Casino Royal Commission, as the probe draws to a close.
Former head of financial crime risk at National Australia Bank, Steven Blackburn, fronted the Perth Casino Royal Commission via video link this morning, nine months after being tasked with interrogating the casino giant’s policies.
Mr Blackburn was grilled at length by counsel assisting the commission Patricia Cahill about his review of the group and its financial management program, as well as the areas he had identified as being under-resourced and in need of additional staff.
He conceded that he did not believe Crown was entirely managing its financial risks, and that its program was not at the maturity level he would deem necessary.
But he was also pressed about the capability of those managing the casino’s 'cage', where cash and other financial transactions are undertaken.
In particular, Mr Blackburn was asked about Perth Casino’s general manager of cage and account Jarrad Campbell and former manager David Brown; both of whom have been involved in the cage operations over many years, including when money laundering was facilitated through the Riverbank Investments account.
Mr Campbell acknowledged the red flags he missed when quizzed by the commission back in September over more than $1 million in transfers he helped facilitate between a junket operator and the company’s own bank account.
While admitting he had not yet drawn a conclusion, Mr Blackburn labelled the evidence given by Mr Campbell as “concerning”.
“I haven’t assessed that in a manner where I am comfortable drawing a conclusion, but some of the evidence was certainly concerning to me,” he told the commission.
“However, I wonder whether or not, and this is all speculation, whether there was inadequate training in the past to fully prepare the manager of the cage to prepare him for his role in the financial crime space.”
Mr Blackburn also voiced disappointment with evidence provided by David Brown, who left the role in September, in the context of awareness and understanding of financial crime issues.
While reiterating that he couldn’t confirm whether it was the result of inadequate training, Mr Blackburn said it was clear transactions weren’t identified that should have been and that it was
“problematic”.
When pressed by counsel assisting Patricia Cahill about whether it was appropriate for either of the two to hold a similar role in the future, he said he would question their suitability.
“As I said, I wouldn’t be able to conclude, but I would question their suitability and I think interrogation is completely appropriate," Mr Blackburn said.
He said it was crucial the casino giant had three lines of defence in the way of financial risk management.
“To me, and in my experience, the first line is often only as good as the second line is," he told the commission.
“Based on my understanding and my review of what has occurred with the Riverbank accounts and in the royal commissions, and the evidence the pair provided, the second line was inadequate and the advice provided was inadequate and the decisions made by the second line were inadequate.
“What troubles me most, is that I don’t believe the board were in a position to discharge their obligations because they weren’t informed appropriately of some of the challenges that existed in the financial crime space.
“I’m afraid I don’t consider it appropriate [for them to hold similar roles in the future].
“I haven’t yet made a determination on whether or not it is appropriate, but I have concerns and I will pursue those concerns and have pursued those concerns.”
Today marks the 57th and final day of hearings for the royal commission, which will determine whether the casino should be able to retain its casino licence.
The commission has involved the grilling of several prominent business people, including billionaire James Packer, John Poynton, and Tim Roberts.
The state government first announced a royal commission in March, the first to be held in WA in two decades, in the wake of a damning report that accused Crown of laundering money through subsidiaries’ bank accounts at its Perth and Melbourne operations.
Commissioners Neville Owen, Lindy Jenkins, and Colin Murphy, who were appointed to lead the inquiry, are expected to deliver a final report in March 2022.
