The Financial Intelligence Unit of Australia (AUSTRAC) has initiated legal proceedings against Star Pty Limited and Star Entertainment QLD Limited, claiming substantial violations of Australia’s anti-money laundering and terrorism financing regulations. These infractions are considerable and seem to be widespread, suggesting a possible trend of wrongdoing.
AUSTRAC’s inquiry, commenced in 2019, has revealed a series of worrisome practices, including an inability to sufficiently evaluate the dangers of money laundering and terrorism financing, insufficient supervision from upper management and the board of directors, and a deficiency in appropriate due diligence on clients who posed a heightened risk of money laundering.
This legal action follows a wider sector examination and emphasizes the Australian government’s dedication to suppressing financial crime. The investigation involved cooperation with other regulatory agencies, including those supervising gaming in New South Wales and Queensland, underscoring the gravity of the accusations.
Lawbreakers attempt to leverage financial structures to cleanse their illicit funds and inflict damage upon our communities,” declared Nicole Rose, the director of AUSTRAC, Australia’s financial intelligence unit. “Companies are frequently the initial safeguard because they are the ones who initially detect questionable dealings.”
Rose highlighted that AUSTRAC’s inquiry revealed significant shortcomings within Star, encompassing inadequate administration, loose supervision, and a deficiency in executing strong anti-money laundering and counter-terrorism funding initiatives.
“Star simply didn’t take sufficient action to understand their clientele,” she continued, “which permitted unlawful actions to thrive directly under their watch for an extended period.”
AUSTRAC emphasized that the decision regarding the issuance of a civil penalty order and the establishment of any financial repercussions lies with the judicial system.