The Australian financial intelligence agency, AUSTRAC, has initiated legal proceedings against Star Pty Limited and Star Entertainment QLD Limited in Federal Court, citing significant violations of the law. In essence, AUSTRAC contends that the Star casino establishments disregarded and failed to address indications of money laundering activities, and potentially even the financing of terrorism, over an extended period.
This legal action represents the culmination of a protracted investigation conducted by AUSTRAC, commencing in 2019, which initially encompassed the entire casino sector and subsequently focused on Star in 2021. Throughout this process, they have collaborated closely with regulatory bodies in New South Wales and Queensland, including those responsible for overseeing gambling operations and the Australian equivalent of the Securities and Exchange Commission, known as ASIC.
AUSTRAC’s allegations appear to be quite serious. They assert that Star neglected to undertake adequate assessments of the risks associated with financial crimes within their casinos, let alone implement measures to mitigate such risks. It appears that there was a lack of effective supervision from the board of directors, and they failed to conduct due diligence on certain high-roller patrons who posed significant risks.
Lawbreakers are perpetually seeking avenues to manipulate the monetary framework, employing it to cleanse their illicit gains and inflict damage upon society,” declared Nicole Rose, the director of AUSTRAC, Australia’s financial intelligence unit. “Companies are frequently the initial safeguard, serving as vital guardians of our economic structure. They possess a unique vantage point to detect warning signs and dubious dealings.”
Rose’s remarks followed AUSTRAC’s disclosure of a trend of grave deficiencies. “Our inquiry exposed a series of problems, encompassing inadequate oversight, substantial flaws in hazard mitigation, and a failure to construct and uphold a sturdy system to combat money laundering and the funding of terrorism,” she elaborated.
Turning her attention to the Star Entities matter, Rose emphasized the pervasive nature of the violations. “They neglected to adequately vet their clientele, disregarding the fundamental due diligence procedure. This ultimately permitted grave misconduct to thrive for numerous years.”
AUSTRAC clarified that the court retains the authority to impose a civil penalty and determine any associated financial sanction.