Australias financial crime regulator, AUSTRAC, is investigating Star Entertainment Group regarding its compliance with anti-money laundering regulations. This probe could significantly impact Star’s proposed $9.4 billion acquisition of its competitor, Crown Resorts.
Star acknowledged that AUSTRAC identified several potential breaches of its anti-money laundering and counter-terrorism financing responsibilities. The concerns appear to center around Star’s management of high-roller VIP patrons, particularly those deemed high-risk or politically connected, from 2015 to 2019. These concerns were initially raised by AUSTRAC in 2019, specifically regarding their Sydney gaming establishment.
Unsurprisingly, Star pledges full cooperation with the investigation. It’s important to note that Star operates the sole casino in Sydney.
Adding another layer of complexity, Star recently launched a bid to acquire Crown Resorts, another casino powerhouse currently embroiled in its own share of scrutiny. Crown is presently under investigation, including a royal commission, regarding its business practices.
The Australian gaming behemoth, Crown Resorts, is under fire due to accusations of illicit financial activities. Numerous inquiries are in progress to determine if their casino licenses should be revoked.
A significant investigation is being conducted by AUSTRAC, Australia’s financial crime authority. They are meticulously examining Crown’s Perth casino, searching for proof of money laundering and potential breaches related to the funding of terrorism.
Furthermore, AUSTRAC is scrutinizing SkyCity Entertainment Group, another prominent figure in the Australian casino industry, for comparable concerns. It appears that the odds may not be in favor of the house this time.
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