SYDNEY (Reuters), Australia’s financial crime regulator filed a civil suit against Crown Resorts Ltd. on Tuesday. The lawsuit accused Crown Resorts Ltd of failing to properly assess the risks of money laundering, terrorism financing and at its two only operational resorts.

Australian Transaction Reports and Analysis Centres (AUSTRAC) stated that James Packer, a billionaire, had failed to fulfill his obligations. It made Australia’s financial system and business “vulnerable for criminal exploitation”.

AUSTRAC found that Crown failed to implement and follow a compliant AML/CTF program. This programme would help Crown identify, reduce and manage any risk their products or services are misused for money laundering and terrorism financing,” Nicole Rose, the CEO of the watchdog, stated in a statement.

Crown also failed to conduct appropriate customer due diligence, including with customers at high risk. Rose said that this led to “widespread and severe non-compliance for a number years.”

AUSTRAC didn’t publish the statement of claim against Crown, but Federal Court databases showed that a suit was filed against Crown by AUSTRAC on Tuesday.

Crown claimed it is reviewing AUSTRAC’s statement of claim but also that Crown had developed a comprehensive mediator plan and revamped its governance following allegations of bad due diligence at a regulator inquiry in 2020.

AUSTRAC launched its investigation into Crown on October 2020. This was the beginning of three investigations into Crown’s governance.

Authorities in Sydney had to cancel the company’s gaming licence because it was opening a new casino there. Meanwhile, authorities in Melbourne placed Crown under federal supervision.

Another inquiry in Perth is still to be reported.

The majority of the board, management, and recommendations shareholders have now been replaced. These include James Packer (billionaire founder) and James Packer (37% owner).

Blackstone declined to comment.