Australias financial intelligence agency, AUSTRAC, has filed a lawsuit against Star Entertainment Group. The company is facing allegations of significant violations of anti-money laundering and terrorism financing regulations. Essentially, AUSTRAC claims that Star’s casinos disregarded possible money laundering, particularly by certain high-stakes gamblers. This probe has been ongoing, with AUSTRAC collaborating with other authorities. The case underscores the crucial need for casinos to prioritize their role in preventing financial crimes.
Lawbreakers are constantly seeking methods to manipulate the fiscal framework for cleaning their illicit funds, and this negatively impacts everyone,” stated Nicole Rose, director of AUSTRAC, Australia’s financial intelligence unit. “Companies are frequently the initial safeguard against this type of behavior because they are at the forefront, observing the exchanges and patrons that move through our monetary system.”
“Our inquiry into Star revealed some significant concerns, such as inadequate supervision, deficiencies in risk mitigation, and a failure to adequately execute and sustain a program to combat money laundering and the financing of terrorism,” Rose remarked. “They were also not doing sufficient due diligence to truly understand their clientele, which is a critical element in halting financial wrongdoings. This resulted in some very grave and widespread violations of the law that persisted for an extended period.”
AUSTRAC stressed that the court will determine whether to impose a civil penalty order and the sum of any financial sanction.
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