In the wake of the massive scandal centered on Australia’s Crown Resorts, the country’s gambling operators – as well as those around the world – should start preparing now to see changes in how the activity is regulated. Crown’s future is in doubt as it has been dubbed “unsuitable” to hold a gaming license and more fallout is expected to come. In the meantime, until those new regulations are implemented, Australia’s financial watchdog, the Australian Transaction Reports and Analysis Centre (AUSTRAC), is clearing the air over some details. When it comes to managing junkets that work with casinos, the casino operators, not regulators, are responsible for keeping them in line.

The ongoing investigation into Crown, which is accused of facilitating massive money laundering as it turned a blind eye, has caused government officials and regulators to spend an exorbitant amount of time sifting through mountains of information to figure out who went wrong and where. This subject came up during a recent Senate hearing attended by the CEO of AUSTRAC, Nicole Rose, who made it clear that casino operators are expected to manage all aspects of their operations, including junkets.

Rose asserted during the hearing, “AUSTRAC does not regulate junket tour operators. The onus is on industry to ensure it complies with its AML/CTF obligations. The Federal Court has also reiterated this view.” She added, when asked about possible voids in junket regulations, that “domestic regulation won’t address the issues” and that “the industry was well placed to manage and assess its own risks.”

AUSTRAC has long believed that casino operators have been lax in their oversight of junkets, possibly because these are responsible for bringing millions of dollars each year to the properties. The watchdog determined three years ago that operators were more than willing to let certain activities slide and that they weren’t performing due diligence properly on the companies to ensure that they were living up to Australia’s financial standards.