The Australian Transaction Reports and Analysis Centre (AUSTRAC) has broadened the scope of its inquiry into money laundering at Star Entertainment casinos, looking beyond the group’s Sydney operations.
In a statement to the Australian Stock Exchange, Star said it will fully comply with the financial watchdog, which has requested additional documents in the probe.
Last June, AUSTRAC informed Star that it had identified alleged money laundering at Star Sydney and the management of “high-risk and politically exposed persons” that began in 2015.
According to The Australian, Star has been likened to its chief rival, Crown Resorts, where similar patterns of noncompliance included welcoming high rollers linked to organized crime, drug trafficking, money laundering, tax evasion and corporate fraud. Crown has since been deemed unsuitable to hold a casino license in two of the states in which it operates.
A media investigation found that Star allowed Chinese VIPs to use China Union Pay Cards to withdraw huge sums for gambling but disguise them as hotel expenses. It alleged that Star was aware of the problem due to an audit it commissioned in 2018, but failed to act on the auditor’s findings.
Star denied the allegations at the time and said it was “concerned by a number of assertions within the media reports that it considers misleading.”
On January 14, AUSTRAC informed Star that it has expanded the scope of its investigation to include “other entities” beyond Sydney.
“The Star takes its anti-money laundering obligations very seriously and will fully co-operate with AUSTRAC in relation to its requests for information and documents, and the investigation,” the company stated.
Star faces a series of public hearings by the NSW Independent Liquor & Gaming Authority (ILGA) in March as part of a regular review into Star Sydney and whether it’s suitable to hold a gaming license.
Last fall, ILGA said it is “in the public’s interest to hold public hearings on matters including but not limited to the Star’s maintenance and administration of systems to counter money laundering and infiltration by organized crime.”
