Australia's Federal Court has ordered The Star Entertainment Group to pay A$260 million after finding breaches of anti-money-laundering and counter-terrorism-financing laws. AUSTRAC announced the order on October 28 and said the operator failed to maintain a compliant AML/CTF program and adequately monitor customer risk.
The regulator said the failures included inadequate verification of customer information and sources of funds, insufficient due diligence and weak monitoring of high-risk activity. AUSTRAC also said more than 1,200 customers used channels that carried elevated money-laundering and terrorism-financing risks.
Reuters reports that the penalty followed civil proceedings launched by AUSTRAC in 2022 and was below the roughly A$400 million sought by the watchdog. The report says the court found repeated breaches when designated services were provided between November 2016 and November 2022.
The decision adds a substantial federal penalty to earlier state enforcement against Star. AUSTRAC said the amount reflects both the seriousness of the contraventions and the significant sanctions already imposed through casino inquiries, while maintaining a deterrent effect for the wider sector.
