Sydney, Australia is known for impressive landmarks like the Sydney Opera House. Another large entertainment company was planning on operating in Sydney. Crown Resorts was all set to open a large casino on the waterfront in Sydney next month. However, after the news of financial illicit actions was leaked this week, authorities had to intervene. Many authorities were uncomfortable with the company continuing their casino opening and operation plans in Sydney with these allegations floating around.
Crown Resorts is one of the biggest entertainment companies in Australia. Now they must delay their opening plans due to claims of probable money laundering. A lawyer of the company was interrogated and then confessed to an official that two frequent gamblers' accounts probably laundered illegal funds in the gambling company's already existing locations in Melbourne and Perth.
As a result, the New South Wales regulation is launching a new investigation into the company. Because of these allegations against the company, they are not to open their casino in Sydney as they had initially planned to next month.
Regulators of New South Wales are taking action to ensure that Crown Resorts are not secretly allowing these illicit acts to happen. Another serious concern for Australian authorities is whether Crown has been submitting authentic financial reports of their profits and losses over the years. Having strong risk management policies and accurate reporting is essential for any business to run ethically. Incorrect reporting can lead to legal and financial trouble in the future.
Crown's ownership and shareholding could already be hanging in the balance since it is not just the opening plans in Sydney being halted. Crown shares are currently on hold as well, in the Australian Securities Exchange. Since Crown's foundation is currently on shaky footing, Crown's ownership may shift as a result.
Maadhavi Barber, Moody's Investor Service personnel made the point of the potential increased severity of this week's findings by the New South Wales gambling commission. Possible involvement of any company in illegal activities can ruin their reputation and their standing in the stock market. There could possibly be increased risks of sanctions or limitations placed on Crown shares and ownership.
If a large corporation or company has any illicit suspicions cast against them, their shareholders' faith in the company will surely suffer. Many stockholders may decide they want to sell their shares of Crown's company because they do not see the company retaining their standing in the business.
After all, not many people want to put their money and trust in a company that is full of secrets and deceit. Many companies have experienced the consequences of selfish behaviors and unethical actions, once they are found out. Unethical business practices can destroy a company if they are not careful!
The investigation is to be completed by February of 2021. James Packer, the current owner of Crown Resorts made an announcement that they have delayed their plans of opening the new casino in Sydney until February next year. In another announcement, Crown Resorts expressed their innocence in the current allegations, claiming that, all of their shortcomings and risk management problems have been fixed.
After the New South Wales commission investigation wraps up, the Crown may not be allowed to open the new casino or any operations in Sydney at all. The findings of the regulators will determine if Crown will be able to continue with their Sydney opening plans or possibly other operations or not. Currently Crown is intent on opening operations that do not involve gambling or games in the Sydney location.