AUSTRAC Alleges Serious and Systemic AML Failures at Star Casinos

Summary

In November 2022, AUSTRAC commenced Federal Court civil-penalty proceedings against The Star Pty Limited and The Star Entertainment QLD Limited, entities within The Star Entertainment Group. AUSTRAC alleges serious and systemic failures to comply with Australia's anti-money-laundering and counter-terrorism-financing laws. The regulator alleges deficiencies in risk assessment, transaction monitoring, enhanced customer due diligence, board and senior-management oversight and controls for high-risk customers. AUSTRAC also alleges that customers were permitted to move money through non-transparent payment channels without adequate understanding of the source of funds or the associated money-laundering risks. The proceeding remains before the Federal Court, so these claims should be treated as regulatory allegations rather than final judicial findings. Sources: AUSTRAC https://www.austrac.gov.au/news-and-media/media-release/austrac-commences-proceedings-federal-court-against-star-entertainment-group-entities AUSTRAC enforcement register https://www.austrac.gov.au/about-us/record-our-actions/enforcement-actions-taken