Australian casino hit with hefty fine
Australia’s largest listed casino company has been hit with hefty consequences following serious legal violations.
The Star Entertainment Group has been fined $260 million for historical money laundering breaches.
The penalty was handed down in the Federal Court by Justice Cameron Moore on Wednesday, October 28. It came a day after shareholders gathered for the casino operator’s annual meeting in Sydney.
AUSTRAC brought the case in 2022 and asked for a total fine of $400 million. Star argued that anything over $100 million could force it into liquidation.
Justice Moore split the difference, finding Star’s number was too low and AUSTRAC’s was too high. The fine is split between The Star Sydney, which copped $195 million, and its Gold Coast arm, which was hit with $65 million. Because Star will likely need to raise money to cover it, the company has been given 19 months to pay in four instalments.
At the centre of the case was Star’s dealings with junket operators, most notably Suncity, and its failure to deal with the money laundering risks that came with them. The court heard Star kept taking money even when there was evidence some of it was linked to crime.
It was also made clear that the actions taken by Star were not mere oversights.
“The Court found The Star did not simply fail to complete the right checks. It allowed high-risk customers to gamble without properly establishing where their money came from and put profit over compliance on a large scale,” Justice Moore said.
At its core, the court found Star failed to keep a compliant AML/CTF program and failed to monitor its customers.
AUSTRAC CEO Brendan Thomas said: “The Court found The Star did not simply fail to complete the right checks. It allowed high-risk customers to gamble without properly establishing where their money came from and put profit over compliance on a large scale.
“AUSTRAC will not tolerate companies putting profit over their obligations to the Australian community.”
Star has accepted the penalty, and claims it won't be the end of the companies future.
