Australias financial regulator, AUSTRAC, has reached a resolution with Star Entertainment Group, imposing a substantial $67 million AUD (approximately $44.6 million USD) fine on the casino enterprise. This accord follows claims that Star Entertainment significantly failed in its anti-money laundering and terrorism financing obligations, as stipulated in the Anti-Money Laundering and Counter-Terrorism Financing Act of 2006.
However, this settlement is not yet finalized. It is scheduled for a court appearance on June 7th, where a magistrate will determine if this penalty is sufficient.
Star Entertainment has not disputed the allegations. They have acknowledged shortcomings in fulfilling their legal responsibilities to implement robust anti-money laundering and terrorism financing safeguards. They also admitted to inadequate scrutiny of high-risk patrons, a serious breach.
This is not Star Entertainment’s first encounter with authorities. Just last September, one of their gaming venues had its permit briefly revoked due to comparable compliance deficiencies. Furthermore, their CEO, Michael Ahearne, stepped down in October, followed by the Australian COO, David Christian, in April. Evidently, there are systemic problems within the organization.
Meanwhile, AUSTRAC is maintaining its vigilance. They have been actively initiating inquiries into other entities suspected of analogous infractions, with the internet gaming firm bet365 being their most recent focus.
In a current declaration concerning AUSTRAC’s sanction on SkyCity, Chief Executive Brendan Thomas emphasized worries that SkyCity’s procedures might have allowed hazardous activities, conduct, and client connections to endure unaddressed for numerous years. This circumstance is not exclusive to SkyCity, as multiple Australian gaming providers have encountered examination for wrongdoing and deficiencies in anti-money laundering protocols. As an example, BlueBet received a $50,000 penalty in April for promotional violations, while Star Entertainment is contending with even graver accusations of misconduct, resulting in the exit of leaders such as Chief Executive Jessica Mellor and Chairman David Foster.