Australias financial crime regulator, AUSTRAC, is probing Star Entertainment Group, a gaming company, regarding worries about its adherence to anti-money laundering regulations. This inquiry could hinder Star’s proposed $12 billion AUD (approximately $9.4 billion USD) acquisition offer for its competitor, Crown Resorts, as per Reuters.
In a public announcement, Star Entertainment recognized that AUSTRAC had pinpointed possible violations of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and the Anti-Money Laundering and Counter-Terrorism Financing Rules 2007.
These apprehensions, first brought up by AUSTRAC in 2019, originate from the watchdog’s examination of Star Sydney’s management of high-stakes players and politically connected individuals between 2015 and 2019. The matters encompass continuous due diligence, the execution and upkeep of an anti-money laundering and counter-terrorism financing program, and conformity with Part A of that program.
As AUSTRAC initiates a formal inquiry, Star has committed to complete cooperation with their requests for data and records. It’s important to mention that Star currently manages the only casino in Sydney.
This situation arises shortly after Star’s recent attempt to purchase Crown Resorts, another significant gaming corporation presently entangled in its own series of investigations and a royal commission inquest into its casino activities.
The authorities in Australia are examining Crown Resorts, a prominent gaming enterprise, for possible illicit finance operations. This action comes after a preliminary assessment that highlighted significant worries regarding the firm’s business practices. The inquiry will ascertain whether Crown is fit to retain its gaming permit. A parallel investigation has been initiated into SkyCity Entertainment Group, another casino operator, concerning potential infringements of anti-money laundering and terrorism financing regulations at its Australian gaming venues. Further intensifying the scrutiny, AUSTRAC, Australia’s financial intelligence unit, is undertaking its own probe into Crown, concentrating on potential legal violations at the company’s Perth casino.
