The Australian Transaction Reports and Analysis Centre (AUSTRAC) reported that the Federal Court ordered The Star Entertainment Group to pay AUD 260 million for breaches of Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws. The casino operator failed to maintain a compliant AML/CTF program and adequately monitor customers to identify, mitigate and manage money laundering and terrorism financing risks. The failures included inadequate verification of customer information and sources of funds, insufficient due diligence and deficient monitoring of customer activity. More than 1,200 customers were able to gamble through channels carrying elevated money laundering and terrorism financing risks. These channels included transactions and cash deposits by third parties whose identities were not recorded. The Star also allowed junkets continued access to private gaming rooms despite suspicious activity and known risks. The court found that the non-compliance undermined AUSTRAC’s and law enforcement agencies’ ability to trace money to its source, reducing opportunities to disrupt unlawful activity and recover criminal proceeds. In determining the penalty, the court took account of AUD 200 million in previous penalties for conduct that significantly overlapped with these proceedings. Earlier casino inquiries in Queensland and New South Wales had also resulted in the suspension of The Star’s casino licences and supervision by a manager.

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