Star Entertainment faces $260M penalty for anti-money laundering failures
Key points
- The federal court imposed a penalty of $260 million against the casino operator after finding widespread compliance failures.
- The fine sits below the regulator's proposed $400 million but above the company's argued capacity to pay.
- The court permitted the casino group to pay the penalty in stages rather than in a single lump sum.
Troubled casino operator Star Entertainment (ASX:SGR) was ordered by the Federal Court to pay an $260 million penalty for allowing widespread money laundering.
Justice Cameron Moore determined that the company's proposed $100 million fine was inadequate, while the national regulator suggested a $400 million fine was excessive.
“Star put profit over compliance and did so on a large scale,” said Justice Cameron Moore.
The court permitted the business to pay the substantial fine in stages instead of enforcing an immediate lump-sum payment.
Following the announcement, the Star Entertainment share price was down at $0.13.
The national anti-money laundering and counter-terrorism financing regulator initiated court action in 2022 alleging the firm permitted high-risk clients to process billions of dollars through its Sydney, Brisbane, and Gold Coast venues.
Court filings indicated that high rollers participating in junkets spent more than $125 billion across the operator's venues between November 2016 and October 2020.
Frequently asked questions
More from Australia
Amplitude Energy secures 15 petajoule gas licence
Sea Forest reports 67% quarterly revenue increase
Frasers declares Accent Group 65-cent offer final
SciDev secures $8M in new chemistry contracts
Warburg Pincus raises ingenia offer to match AVID bid
Brightstar Resources begins drilling at Sandstone Project deposit
-640x360.webp&w=3840&q=75)
