The prominent Perth businessman took the stand on Wednesday as evidence resumed in a West Australian royal commission examining Crown's suitability to retain a casino licence.

Mr Poynton resigned from Crown's board in March after a two year stint, later claiming he had been placed under "significant pressure" to do so by company chair Helen Coonan.

He also stepped down as chair of subsidiary company Burswood Limited, having served on its board as a non-executive director since 2004.

The investment banker told the inquiry Burswood Limited had oversight of the casino operations but no power to direct the casino licensee which sat below it.

He said the board members were intended to be "ambassadors ... (who) were there to provide political and economic overview about the situation in WA".

"It was never envisaged, in my recollection, that this company and its directors would be directly responsible for the management of the casino," he said.

The commission heard the Burswood Limited board met quarterly, with some meetings lasting fewer than 30 minutes.

Mr Poynton said the directors received a wide range of reports, including those related to Crown's compliance with anti-money laundering laws.

"On the basis of the reports that we received from many, many sources, but particularly internal and external auditors, there were no red flags," he said.

The damning Bergin report released in NSW earlier this year found Crown had "enabled or facilitated" money laundering at its Perth casino through an account linked to a shell company, Riverbank Investments.

Mr Poynton testified that he had no knowledge of the company, which he accepted was a wholly-owned subsidiary of Burswood Limited, until it was brought to light by media allegations around July or August 2019.

"Isn't it the case that your failure to be aware of the existence of Riverbank Investments ... was a failure on your part to ask the right questions of management to hold them to account?" counsel assisting the commission Patricia Cahill SC asked.

Mr Poynton rejected the question, saying directors relied upon management to provide the information needed to carry out their duties.

"How do you ask something about which you know nothing?" he said.

Ms Cahill this week said the royal commission's second phase of evidence would cover allegations of money laundering, junket operations, Crown's reporting of suspicious transactions, and its management of problem gambling.

The inquiry had previously examined WA's regulatory settings.

A Victorian royal commission was last week told Crown was not suitable to hold a licence for its Melbourne casino.

The inquiry continues.

Australian Associated Press