Australias financial regulator, AUSTRAC, is pursuing a substantial $67 million (USD 44.6 million) penalty against casino operator Star Entertainment Group. They’ve submitted a proposed resolution to the Federal Court, claiming that Star significantly failed to comply with anti-money laundering and counter-terrorism financing regulations.
A judge will determine on June 7th whether to endorse the sanction.
Star is not contesting the allegations, acknowledging they fell short of their responsibilities under the Anti-Money Laundering and Counter-Terrorism Financing Act of 2006. In particular, they erred in critical anti-money laundering and counter-terrorism financing procedures and did not adequately scrutinize high-risk patrons.
This is not Star’s first encounter with authorities. Last September, they were forced to briefly suspend their casino activities due to compliance shortcomings. Adding to the upheaval, Star’s CEO Michael Ahearne stepped down in October, followed by the Australian COO David Christian in April – evident indicators of the company’s difficulties.
AUSTRAC itself has been intensifying enforcement recently. They just initiated an inquiry into bet365 for possibly breaching the same laws as Star.
Australias financial crime regulator, AUSTRAC, recently initiated proceedings against a prominent casino entity, Crown Resorts. The agency’s head, Brendan Thomas, stated that Crown had permitted a series of precarious operations and associations with questionable patrons to endure for an extended period.
This occurrence is not unique within the Australian gaming sector. Numerous operators have faced criticism for improper conduct and inadequate anti-money laundering protocols.
As an illustration, earlier this year, Tabcorp received a penalty for breaching promotional guidelines, while Star Entertainment is confronting significant accusations of its own. These accusations have already resulted in the departure of multiple high-ranking officials, highlighting the gravity of the circumstances.
