Australias financial crime regulator, AUSTRAC, is probing Star Entertainment Group for possible breaches of anti-money laundering regulations. This development could significantly affect Star’s proposed $9.4 billion takeover of competitor, Crown Resorts.
Star confirmed that AUSTRAC found several situations where their procedures might not have met the 2006 Anti-Money Laundering and Counter-Terrorism Financing Act standards. The inquiry, initiated in 2019, focuses on how Star Sydney managed high-stakes players, including potentially politically connected individuals, from 2015 to 2019.
AUSTRAC’s investigation remains active, and Star has committed to complete transparency. This situation adds another complication to Star’s attempt to acquire Crown Resorts, which is already entangled in numerous investigations and a royal commission examination into its own casino activities.
The prominent gaming company, Crown Resorts, finds itself embroiled in controversy following accusations of illicit financial activities, prompting numerous investigations into the status of its casino operating permits. The pressure has intensified with AUSTRAC, Australia’s financial crime watchdog, initiating a comprehensive inquiry into Crown’s Perth establishment for possible violations of anti-money laundering and terrorism financing regulations.
Furthermore, SkyCity Entertainment Group, another significant entity in the Australian casino industry, has also attracted the scrutiny of AUSTRAC due to similar concerns regarding questionable practices. It appears that fortune may not always favor the house.