Crown Melbourne faces fines of up to $100 million over a scheme that allowed the illegal transfer of funds from China.
Victoria's new Gambling and Casino Control Commission has started disciplinary proceedings against Crown claiming it devised the "China Union Pay process" to evade Chinese currency restrictions and enable the illegal transfer of funds from China.
VGCCC chair Fran Thorn said the role of the commission was to hold Crown Melbourne to account.
"As a first step, we are acting on the Royal Commission's findings that Crown's China Union Pay process breached important Victorian regulatory obligations, was illegal and constituted serious misconduct," she said.
The Royal Commission found Crown Melbourne allowed international patrons to access funds to gamble at the casino via a Chinese-based bank card, between 2012 and 2016.
Between those years, a Chinese national could not transfer more than $US50,000 per year to another jurisdiction.
The VGCCC claims Crown devised a plan to issue a room charge bill to the individual, falsely asserting the hotel had provided services to the person.
They would then pay the bill, using their China Union Pay card, and be given a voucher acknowledging receipt of funds.
Then the person, accompanied by a Crown VIP host, took the voucher to the cage and exchanged it for cash or chips.
The disciplinary action could result in the VGCCC imposing a fine of up to $100 million, varying Crown Melbourne's licence or censuring the casino and directing it to take action.
During 2021, a Royal Commission was conducted into the Victorian Casino Operator and Licence.
Among other things, the Royal Commission considered terms of reference directed at whether Crown is suitable to hold the Melbourne Casino Licence and is complying with its legislative obligations.
The Victorian Government appointed a Special Manager to supervise the operations of the Melbourne casino for a period of two years, while Crown attempts to reform itself.
After that two-year period, the VGCCC will decide whether Crown is suitable to regain the Melbourne Casino licence unsupervised.
Crown Melbourne has been contacted for comment.
