News agency Reuters says Australian gaming company Star Entertainment Group is facing scrutiny. The Australian financial watchdog, AUSTRAC, believes Star Entertainment may have broken anti-money laundering regulations, potentially putting their enormous $9.4 billion offer to buy competitor Crown Resorts at risk.
Star Entertainment recognized AUSTRAC’s worries, indicating they stem from possible violations of Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and Rules 2007. AUSTRAC initially flagged these concerns in 2019, concentrating on Star Sydney’s handling of high-risk and politically sensitive patrons from 2015 to 2019. The regulatory body is especially interested in Star’s due diligence practices, anti-money laundering and counter-terrorism financing initiatives, and overall adherence.
AUSTRAC is dedicated to a comprehensive inquiry, and Star Entertainment pledges full cooperation. This probe adds another complication to Star’s proposed acquisition of Crown Resorts, which is itself entangled in multiple investigations and a royal commission examining its own casino activities. The results of AUSTRAC’s investigation could significantly impact the trajectory of both corporations.
Early accounts of illicit finance accusations aimed at Crown Resorts have initiated numerous inquiries by regulatory bodies, who are evaluating the company’s continued eligibility to retain its gaming permit. The Australian Transaction Reports and Analysis Centre (AUSTRAC) has broadened its scrutiny of Crown to encompass its Perth gaming establishment, commencing a formal enforcement inquiry into possible violations of anti-money laundering and terrorism financing regulations.
This regulatory agency is concurrently examining SkyCity Entertainment Group regarding comparable apprehensions about potential infringements of anti-money laundering and terrorism financing statutes at its Australian gambling venues.