Australia's Star Entertainment fined $183 million for anti-money laundering law breaches
- The penalty stems from a civil lawsuit brought in 2022 by the Australian Transaction Reports and Analysis Centre
An Australian federal court fined casino operator Star Entertainment A$260 million for breaching anti-money laundering and counter-terrorism financing laws, stemming from a 2022 civil lawsuit.
- The specific breaches of anti-money laundering regulations.
- Star Sydney's failed anti-money laundering program.
- Star Entertainment's financial position after the penalty.
An Australian federal court on Wednesday fined casino operator Star Entertainment A$260 million ($182.73 million) for breaching anti-money laundering and counter-terrorism financing laws, according to a court judgment.
The penalty stems from a civil lawsuit brought in 2022 by the Australian Transaction Reports and Analysis Centre, which alleged Star entities failed to comply with anti-money laundering and counter-terrorism financing regulations.
The fine is lower than the roughly A$400 million penalty sought by the financial crime watchdog, according to media reports last year.
The court found that Star Sydney’s anti-money laundering program failed to meet legal requirements and breached the law on multiple occasions each time it began providing designated services to customers between November 30, 2016, and November 30, 2022, among other violations.
The casino operator reported earlier this week that it had A$239 million in cash and cash equivalents at the end of last month and A$80 million in restricted deposits.
Star shares were placed on a trading halt earlier on Wednesday ahead of the court’s decision in the AUSTRAC case.
AUSTRAC did not immediately respond to a Reuters request for comment.