Summary
AUSTRAC, Australia’s financial intelligence agency, is pursuing a civil penalty against Star Entertainment for apparent breaches of anti-money laundering and counter-terrorism financing laws linked to its Star Queensland casino. The agency argues that a AU$400 million fine is warranted, given the extent and duration of Star’s compliance failures, specifically involving ties to high-risk gamblers linked to money laundering. Following an inquiry, Star’s casino licence in Sydney has been suspended.
During a recent court hearing, Simon White SC, representing AUSTRAC, emphasised that the penalty should fit the severity of the violations, which included maintaining relationships with 117 high-risk individuals. Star has previously cautioned that substantial fines could threaten its operational viability.
Key Points
- AUSTRAC is pursuing a AU$400 million penalty from Star Entertainment for anti-money laundering law violations.
- Star’s Sydney casino license has been suspended following a regulatory inquiry.
- Fines are proposed to reflect the severe and prolonged nature of non-compliance with AML laws.
- Star reportedly established ties with numerous high-risk gamblers, including ties to known criminal elements.
- The penalty aims to serve as both specific and general deterrence for future compliance issues.
Why should I read this?
This article is a must-read if you have any interest in the gambling industry or financial regulations in Australia. The implications of AUSTRAC’s actions not only affect Star Entertainment but also set a precedent for how similar cases may be handled in the future. It’s sneaky and important information for understanding the regulatory landscape in the gaming sector, making it a real time-saver for staying informed without digging through reams of documentation yourself.