The Star Entertainment Group’s probe into money laundering has broadened to encompass other organizations within the group.
The Australian gambling firm disclosed in a statement to the Australian Securities Exchange (ASX) that they had been notified by the Australian Transaction Reports and Analysis Centre (Austrac) that the extent of their enforcement inquiry, which commenced last June, had been extended.
Last year, the government-operated national financial intelligence agency filed charges against several of the nation’s leading land-based casino operators in relation to money laundering activities, including Star Entertainment, Crown Resorts and SkyCity Entertainment Group.
As per Star Entertainment’s most recent update today (January 14), Austrac has indicated that it has not yet determined what suitable regulatory measures to take against Star Entertainment, including whether to pursue enforcement action. Austrac has stated that it will be seeking information and documents from Star Entertainment throughout the course of the investigation.
Star Entertainment has underscored in a statement that they take their anti-money laundering obligations very seriously and are dedicated to fully collaborating with the Australian Transaction Reports and Analysis Centre (Austrac) in their inquiry, including providing information, records, and aiding with the investigation.
Star Entertainment is the proprietor and operator of The Star Sydney, The Star Gold Coast, and Treasury Brisbane. Moreover, they have acquired the Sheraton Grand Mirage Resort on the Gold Coast in a joint venture and are actively developing the Queen’s Wharf project in Brisbane.
Last June, Star Entertainment declared that the inquiry into their operations was associated with The Star Sydney hotel, with potential violations involving ongoing customer due diligence, the implementation and maintenance of anti-money laundering/counter-terrorism financing plans, and concerns about compliance with these plans.
These matters were uncovered in a compliance assessment conducted by Austrac in September 2019, focusing on the casino’s management of customers identified as high-risk and politically exposed individuals, covering the periods from July 1, 2015 to June 30, 2016, and July 1, 2018 to June 30, 2019.
Austrac, responsible for monitoring financial transactions to identify money laundering, organized crime, tax evasion, welfare fraud, and terrorism financing, stated that the accusations against the gambling group are related to “serious violations” of the Australian Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) and the Anti-Money Laundering and Counter-Terrorism Financing Rules Regulations 2007 (AML/CTF Rules).
During the ninth month of 2021, the New South Wales Independent Liquor and Gaming Authority initiated an examination into The Star Sydney. They were concerned about the casino’s interactions with VIP clubs and their anti-money laundering procedures.
The Star Entertainment Group refuted media reports in the tenth month that they had disregarded a KPMG report that identified shortcomings in their anti-money laundering practices. A collaborative investigation by The Sydney Morning Herald, The Age, and 60 Minutes alleged that the group had permitted suspected money laundering, organized criminal activity, extensive fraud, and interference to occur at their casinos for an extended period. They had been cautioned that their anti-money laundering controls were inadequate.
Following the Bergin Inquiry report on Crown in the second month of 2021, New South Wales is establishing an Independent Casino Commission (ICC) and implementing legal modifications to prevent criminal activity at casinos.
In the second month of 2021, Crown was deemed unsuitable to operate its casino at Barangaroo in Sydney’s central business district. An inquiry revealed evidence that their facilities and accounts were utilized for money laundering, and that they had collaborated with VIP club operators suspected of involvement in organized crime.
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