SYDNEY • Crown Resorts’ stock yesterday slumped the most since March after the casino operator said it is being investigated for possible breach of anti-money laundering and counter-terrorism financing rules. Australia’s financial crimes regulator has started an enforcement probe into compliance at Crown’s flagship Melbourne casino, the company said.

Austrac’s concerns arose during an assessment that started in September last year and focused on how the casino handled individuals deemed to be high-risk and politically exposed. It is not clear who those people were, but Crown has courted wealthy Asians as part of its programmes for high-stakes gamblers.

With Crown’s annual meeting set for Thursday, the probe piles pressure on a company already beset by governance failures. A separate inquiry in Sydney has unearthed lapses in anti-money laundering controls and there are growing calls from investors for a board shake-up and more independence from billionaire shareholder James Packer.

Crown shares sank 8.23 per cent to close at A$8.25 in Sydney trading. That extended the year’s slump to 32 per cent.

Crown said it will fully cooperate with Austrac and respond to all information requests. Austrac confirmed the investigation, but declined to comment further.

Austrac has a range of options to enforce compliance, and can also apply for a civil penalty order from Australia’s federal court.

Crown is fighting to salvage its reputation before the Sydney inquiry hands down its report early next year. The inquiry is determining whether Crown is fit to run a new casino being built in Sydney. The A$2.2 billion harbourside gaming development is due to open in December.

BLOOMBERG