AUSTRAC to investigate Crown Melbourne

Crown Resorts Ltd.is being investigated by Australia's financial-crimes regulator for a potential breach of anti-money laundering and counter-terrorism financing rules, piling pressure on a company already under fire for governance failings.

The company is also now building a property in Sydney, which it plans to open in December despite facing several legal issues.

CWN shares have dropped 8.8 per cent and been trading at $8.20 at 1:55 pm AEDT.

Crown Resort's stock price has taken a beating over news of potential money laundering breaches.

These concerns will now be the subject of a formal investigation by AUSTRAC Enforcement.

This includes issues relating to customer due diligence and compliance with an anti-money laundering and counter-terrorism financing program.

The Australian Transaction Reports and Analysis Centre (Austrac) will launch an investigation into compliance at the flagship casino of Australia's largest gaming and entertainment group - Crown Melbourne - stemming from concerns in September 2019 about the firm's exposure to high-risk and politically exposed persons.

The investigation comes as Crown nears the end of an inquiry in New South Wales into claims it turned a blind eye to money laundering operations run by organised crime.

"Crown Melbourne will respond to all information requests in support of the investigation and fully co-operate with AUSTRAC in relation to this process".

And Crown shareholders are likely to protest the re-election of three directors at this Thursday's annual general meeting.