AUSTRAC Admits Legal Action Against Star Entertainment Has Been Slow, But Necessary  

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has acknowledged that the legal proceedings against The Star Entertainment Group are taking longer than anticipated. However, the body stood by its decision to take legal action against the casino company due to the severity of its violations.

The Star Has Been Facing Severe Regulatory Setbacks for Years

In 2022, the AUSTRAC uncovered instances of non-compliance that were mostly consistent with the findings of the first Bell inquiry into The Star’s business. The allegations state that the company failed to properly assess AML/CTF risks and prevent potential fraud. According to the AUSTRAC, The Star also failed to properly check its customers’ backgrounds and allowed suspicious high rollers to deposit and withdraw large sums, suggesting potential money laundering. The Star also boasted a partnership with junket operators linked to organized crime, such as Suncity Group.

Due to these violations, The Star Sydney has had its license suspended since 2022. The company has also been facing a fine of up to hundreds of millions of Australian dollars, although the legal proceedings have dragged on.

AUSTRAC Hopes a Decision Will Be Reached Soon

Inside Asian Gaming asked AUSTRAC CEO Brendan Thomas to talk about the legal proceedings at the recent Regulating the Game conference in Sydney. Thomas admitted that the proceedings have been rather slow and expensive, but reaffirmed their importance.

Thomas acknowledged that a lot has changed since the AUSTRAC initiated its legal action, but emphasized that the allegations are “incredibly serious.” As a result, the AUSTRAC, being a regulatory body, cannot “turn a blind eye” to the egregious activity.

Commenting on the matter further, Thomas said that he cannot disclose everything due to the ongoing proceedings, but expressed hope that the Federal Court will reach a decision soon.

While the broader Star matter is still ongoing, the court did recently rule that The Star Entertainment Group’s former CEO & MD Matt Bekier and former chief legal & risk officer Paula Martin had committed violations of the Corporations Act due to their ties with Suncity.

Bally’s Was Appalled by The Star’s Mismanagement

In other The Star-related news, Soo Kim, who chairs US casino giant Bally’s Corp and was also appointed as chair of the Australian company, recently admitted that he was appalled by The Star’s mismanagement.

Speaking at the World Gaming Forum on the opening day of the international trade show ICE Barcelona in January, Kim said that he remains optimistic that Bally’s, which now holds a controlling stake in The Star Entertainment Group, will be able to turn things around.