Australias financial crime regulator, AUSTRAC, is investigating Star Entertainment Group. They believe the casino giant may have failed to comply with anti-money laundering regulations. This could significantly impact Star’s bid to acquire its competitor, Crown Resorts, in a colossal $9.4 billion agreement, as per a Reuters report.
In a public statement, Star acknowledged that AUSTRAC identified some dubious procedures that potentially breached the Anti-Money Laundering and Counter-Terrorism Financing Act of 2006 and its associated 2007 regulations. These concerns revolve around their customer due diligence practices, the management of their anti-money laundering program, and their overall adherence to the established rules. AUSTRAC initially voiced these apprehensions in 2019, specifically regarding Star Sydney’s handling of high-stakes VIP players and politically influential patrons between 2015 and 2019.
Currently, AUSTRAC is intensifying its scrutiny, and Star affirms their complete cooperation. It’s worth noting that Star operates the sole casino in Sydney. This situation becomes even more intriguing given Star’s recent attempt to purchase Crown Resorts, another casino entity already grappling with its own probes and a royal commission examining its business practices.
The Australian gaming behemoth, Crown Resorts, finds itself embroiled in yet another inquiry concerning possible breaches of anti-money laundering regulations. The current investigation centers around their Perth establishment, further expanding the roster of inquiries into the company’s business dealings.
This recent probe, spearheaded by AUSTRAC, Australia’s financial watchdog, comes on the heels of prior reports that highlighted significant apprehensions regarding Crown’s adherence to anti-money laundering and terrorism financing statutes.
Amplifying Crown’s troubles, SkyCity Entertainment Group, a prominent entity in the Australian casino sector, is also under the microscope for comparable potential infractions. Australian regulators appear to be intensifying their efforts to curb potential financial impropriety within the casino industry.
