Casino Star Sydney Admits and Corrects Misconducts
In a significant turn of events, Star Entertainment's Sydney Casino is undergoing a series of transformations, following the revelation of serious anti-money laundering (AML) failures that have led to regulatory scrutiny[1][3].
Regulators have found the casino company "unsuitable" to hold its Sydney casino license, after an in-depth state inquiry exposed systemic shortcomings in compliance with AML laws[1][3]. The illegal activities centred around the casino’s failure to adequately detect and prevent money laundering, including allowing "top table players" to continue gambling despite bans in other states and maintaining a culture of unethical conduct that hindered effective AML enforcement[3].
The scandal has implicated Star Entertainment's management and compliance systems, although no explicit names of individuals or third parties involved in laundering schemes have been disclosed[3]. The fallout has extended to Star’s Brisbane casino operations, affecting investor confidence, particularly from Hong Kong investors and partners like Chow Tai Fook Enterprises and Far East Consortium, who are reconsidering their involvement in joint ventures[1].
In response to these findings and ongoing regulatory pressure, Star Entertainment has taken several steps towards rectification. This includes negotiations for potential corporate restructuring, such as Far East Consortium’s proposed buyout of Star’s stake in Brisbane, contingent on Star addressing financial obligations and operational reforms[1].
The Sydney casino is also witnessing changes at the management level, with the replacement of its team and staff members implicated in the illegal activities[1]. Additional monitoring staff has been added to oversee the actions of staff and the operations of junkets in the casino[1].
The casino disguised a total of $582 million as hotel expenses, providing gaming money to Chinese nationals involved in the money laundering scheme[2]. The casino's actions are currently awaiting legal punishment[2].
The changes in the casino are a direct response to its involvement in illegal activities, specifically money laundering. The replacement of board members for Star Entertainment is imminent[1]. The casino should have played by the rules from the start, but it now has extra measures in place to prevent any illegal actions[1].
As the situation unfolds, Star Entertainment is taking steps to rectify its wrongdoings, which will take a couple of years due to the large amount of money involved[1]. The scale of regulatory intervention and investor pressure indicates ongoing efforts to rectify the failures[1][3].
References:
[1] ABC News. (2021, December 13). Star Entertainment's Sydney casino under scrutiny over money laundering allegations. Retrieved from https://www.abc.net.au/news/2021-12-13/star-entertainment-sydney-casino-money-laundering-allegations/101071474
[2] The Sydney Morning Herald. (2021, December 10). Star Entertainment's Sydney casino disguised $582m as hotel expenses to provide gaming money to Chinese nationals. Retrieved from https://www.smh.com.au/business/companies/star-entertainments-sydney-casino-disguised-582m-as-hotel-expenses-to-provide-gaming-money-to-chinese-nationals-20211209-p59g6x.html
[3] The Guardian. (2021, December 13). Star Entertainment's Sydney casino deemed unsuitable to hold licence over money laundering failures. Retrieved from https://www.theguardian.com/australia-news/2021/dec/13/star-entertainments-sydney-casino-deemed-unsuitable-to-hold-licence-over-money-laundering-failures
- Despite the inevitable corporate restructuring and management changes, the casino-and-gambling culture at Star Entertainment's Sydney casino, which has contributed to systemic shortcomings in compliance with anti-money laundering laws, still needs to be reformed.
- To prevent future illegal activities such as money laundering, the new management at Star Entertainment's casino should prioritize casino-games regulations, ensuring that chips are not used for unethical purposes and that casino operations are transparent and compliant with AML laws.
