Star Entertainment Group is the subject of an investigation by AUSTRAC
According to Reuters, the Australian Transaction Reports and Analysis Centre (AUSTRAC) is conducting an investigation into the casino operator Star Entertainment Group for possible violations of laws pertaining to customer due diligence. If the allegations are proven to be true, the deal to acquire the competing Crown Resorts for AU$12 billion (US$9.4 billion) could be jeopardized. According to the statement that was issued by Star Entertainment, AUSTRAC has found several potential cases of non-compliance with the Australian Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007. [Citation needed] [Citation needed] [Citation needed] [Citation needed] [Citation needed] [Citation needed] [Citation needed]
AUSTRAC initially addressed these concerns in 2019, when the regulator focused on Star Sydney's management of high-risk and politically exposed clients from 2015 to 2019. The concerns include "ongoing customer due diligence, adopting and maintaining an AML/CTF Program and compliance with Part A of that Program."
The Star has declared that it "will fully cooperate with AUSTRAC in connection to its demands for information and documents and the inquiry." A further investigation will be conducted by AUSTRAC. The Star is Sydney's lone casino and is operated by the city.
The Star has only just made a proposal to purchase Crown Resorts, which is another operator that is now facing various inquiries as well as an examination into its casino business from the royal family.
The first report that indicated Crown's participation in money laundering served as the impetus for a series of investigations that were conducted to assess whether or not the organization is qualified to maintain gaming licenses. Today, AUSTRAC has expanded its investigation into Crown and initiated a formal enforcement inquiry into a suspected breach of anti-money laundering and counter-terrorism funding regulations in Crown's Perth casino. This investigation is focused on whether or not Crown violated these rules.
The same possible violations of anti-money laundering and counter-terrorism regulations are being investigated at SkyCity Entertainment Group, which operates a casino in Australia. The regulator is looking into this company as well.
