The Star Casino Faces AUSTRAC Penalties Over Money Laundering Breaches
The Star Casino Faces AUSTRAC Penalties Over Money Laundering Breaches
1
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The Star Casino is embroiled in legal difficulties after allegations emerged in a Federal Court involving their facilitation of risky financial transactions, including offering massive gambling credits to individuals known for money laundering.
This follows financial watchdog AUSTRAC's pursuit of legal action against the casino.
In a court session, barrister Daniel Tynan highlighted the casino's significant failures to adhere to Australian anti-money laundering regulations. In particular, The Star reportedly conducted business with 117 customers deemed as high-risk, of which 70 were heavily involved in activities presenting high money laundering risks.
Of particular concern was The Star's engagement with Alvin Chau, a prominent Suncity junket operator. Despite media associations with international criminal syndicates, The Star issued him a credit ceiling of approximately $266.67 million. Chau reportedly managed to amass a $12.6 billion turnover from 3690 junket operations at The Star’s Sydney venue.
The casino allegedly disregarded Chau's questionable activities until his arrest by Macau authorities on money laundering charges-which subsequently prompted The Star to sever connections with him.
Additional revelations allege that The Star provided roughly $167 million in credit to another customer involved in similar illicit finance activities since 2014. The Star also enabled transactions through 1221 customer channels designed to obscure the individuals' identities.
EEIS, a Macau-based arm of The Star, is accused of aiding these transactions by creating fraudulent documentation for clients wishing to direct funds via the Bank of China, facilitating a near $990 million inbound flow without involving Australian banks.
Justice Cameron Moore heard that these manipulations disguised gambling transactions under the pretense of services like hotel accommodation, exploiting jurisdictions with strict gambling regulations like China. In addition, the casino offered immediate cash withdrawals as funds were deposited anonymously and swiftly converted into cash.
The courtroom expose regarding The Star unveils systemic breaches that not only highlight glaring compliance gaps but also reflect negatively on Australia's financial safeguards against illegal fund movements. Such extensive contraventions expose shareholders and remaining stakeholders to reputational damage and potential financial fallout.
The Star’s controversies also raise concerns among Australian financial entities about maintaining robust practices for preventing illicit financial activities. It necessitates increased vigilance among casinos and financial operators to ensure adherence to anti-money laundering legislation.
AUSTRAC is seeking a hefty $400 million in penalties against The Star, while the casino contends it can afford no more than $100 million without risking administration. This contention highlights the financial crunch The Star faces, following a recent $300 million investment from US-based Bally's Corporation, aimed at stabilising its operations.
As the legal proceedings continue, it puts considerable pressure on The Star to reformulate its compliance strategies and rebuild trust with regulators and the public. Financial experts suggest that broader repercussions might prompt stringent regulatory reforms targeting casinos, ensuring tighter scrutiny over financial dealings and enhanced inter-agency collaborations to deter money laundering activities.
Published:Friday, 6th Jun 2025 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
MotorCycle Holdings Limited (ASX: MTO), Australia's largest motorcycle retailer, has announced a record-breaking revenue of $650 million for the financial year 2025, representing an 11.6% increase from the previous year. This remarkable growth underscores the company's strategic initiatives and resilience in a challenging market. - read more
The Minns Labor Government has unveiled the most significant motorcycle safety reforms in nearly two decades, introducing targeted measures to protect novice riders and enhance overall road safety in New South Wales. - read more
The 2025 Australian Motorcycle Grand Prix, held from 17-19 October at the Phillip Island Grand Prix Circuit, attracted approximately 91,245 visitors, marking the highest attendance since 2012. This surge in spectators provided a substantial economic boost to the Phillip Island region, benefiting local businesses such as hotels, restaurants, and retail outlets. - read more
When it comes to purchasing a motorcycle, finding the right financing is crucial. This article aims to guide you through the process of choosing the best motorcycle finance provider in Australia. Making an informed choice can have a significant impact on your loan terms and conditions, ensuring you get the best possible deal. With numerous finance providers available, it's essential to understand the importance of selecting the right one for your needs. - read more
Embarking on a motorcycle road trip across the breathtaking landscapes of Australia can be an exhilarating experience. The sense of freedom and adventure that comes with cruising on two wheels is unparalleled. However, before the rubber meets the road, it's essential to lay the financial groundwork for your journey. This not only ensures peace of mind but also enables you to enjoy the ride without monetary worries. - read more
Welcome to our guide on how to choose the best motorcycle for your lifestyle and budget! Whether you're a seasoned rider or new to the world of motorcycles, making the right choice can significantly impact your riding experience and financial wellbeing. - read more
START HERE
Get a free bike loan eligibility assessment and compare offers tailored
specifically to your circumstances.
Knowledgebase
Prepayment Penalty: A fee charged by a lender if a borrower pays off their loan early.
