AUSTRAC will not tolerate<\/a> companies putting profit over their obligations to the Australian community.<\/p>\n<\/blockquote>\n\n\n\n Under the AML\/CTF Act 2006, Australian businesses must meet stringent compliance requirements. This includes maintaining a risk-based compliance program and robust \u0627\u0644\u0639\u0646\u0627\u064a\u0629 \u0627\u0644\u0648\u0627\u062c\u0628\u0629 \u062a\u062c\u0627\u0647 \u0627\u0644\u0639\u0645\u0644\u0627\u0621 (CDD)<\/a> processes to identify, assess, and prevent money laundering and other financial crime risks.<\/p>\n\n\n\n Justice Cameron Moore handed down the penalty in the Federal Court. Notably, AUSTRAC originally sought a penalty of A$400 million, highlighting the scale of the violations. The Star, however, sought $100 million, arguing that anything higher would force it into liquidation.<\/p>\n\n\n\n The size of the fine has raised concerns that the company may be unable to pay<\/a> and could enter administration.<\/p>\n<\/blockquote>\n\n\n\n The fine settlement stood at A$260 million noting that the company had paid millions in fines from prior overlapping cases. Governance Expert at Swinburne University, Helen Bird, commented on the size of the fine, stating that if The Star enters liquidation, we can anticipate an announcement soon.<\/p>\n\n\n\n AUSTRAC discovered multiple interconnected vulnerabilities in The Star\u2019s operations. First, the firm allowed junket operators access to private gaming facilities even though it already had concerns about suspicious activity. These junket operators act as intermediaries, recruiting and managing high-net-worth customers for the casino. It also allowed customers who were initially prohibited from gambling in another Australian state to use its services. <\/p>\n\n\n\n The Star generated more than A$1.4 billion in junket revenue, with pre-pandemic junket profits exceeding A$100 million.<\/p>\n<\/blockquote>\n\n\n\n The company\u2019s failures went far beyond missing customer information. The Star managed channels that involved third-party transactions and cash deposits. However, it did not maintain oversight of those parties’ identities. As a result, the casino could not establish proper customer identification, determine the source of funds, conduct enhanced due diligence, or monitor suspicious activity. <\/p>\n\n\n\n Because of The Star’s monitoring deficiencies, we cannot know how much money high-risk customers pumped through its casinos.<\/p>\n<\/blockquote>\n\n\n\n Without reliable identity and beneficial ownership verification<\/a>, the casino had weak control and understanding of who accessed its services and where their money came from. Consequently, it could not detect, trace, or respond to potentially suspicious activity and illicit transaction patterns.<\/p>\n\n\n\n The Star has faced regulatory scrutiny beyond its 2022 Court proceedings. In AUSTRAC\u2019s 2019 casino-wide compliance investigation, it examined The Star\u2019s Sydney and Queensland operations. <\/p>\n\n\n\n In 2022, the NSW Independent Casino Commission (NICC) fined the firm A$100 million<\/a> and suspended its Sydney license over critical compliance deficiencies, including governance and systemic failures in financial crime risk operations. Separately, just two months later, the Queensland Government imposed a A$100 million<\/a> penalty after determining that it was unsuitable to hold a casino license in Queensland, citing several failures in financial crime, safer gambling, and its risk management framework.<\/p>\n\n\n\n In 2024, the NICC penalized The Star an additional A$15 million after persistent weaknesses in its governance and risk management program. By 2026, the Court issued the A$260 million federal penalty. The casino\u2019s prior offenses highlight a company-wide failure to address systemic compliance issues.<\/p>\n\n\n\n For compliance teams, the Star Casino case offers a critical lesson: Can your compliance system detect risk and trigger timely intervention despite the size and complexity of business structures? AUSTRAC\u2019s recent enforcement actions show where regulatory expectations are headed:<\/p>\n\n\n\n Consistent and reliable governance: <\/strong>Deficiencies in oversight and risk management continue to attract large enforcement penalties. In practice, regulated businesses need to demonstrate strong audit trails<\/a>, regular reporting, ongoing team training, and clear senior management accountability. This ensures that compliance programs remain effective in addressing emerging threats.<\/p>\n\n\n\n Stronger response to escalation procedures:<\/strong> The case highlights the gap that can arise between identifying risks and acting on them. Despite recognizing high-risk customers, Star could not implement proportionate controls to manage or report them to regulators. A strong risk management program links robust \u062a\u0642\u064a\u064a\u0645 \u0627\u0644\u0645\u062e\u0627\u0637\u0631<\/a> to monitoring intensity, due diligence, and ongoing reviews.<\/p>\n\n\n\n Comprehensive third-party verification: <\/strong>When businesses work with intermediaries or third-party entities, they must conduct Know Your Business (KYB) verification<\/a>. The Star\u2019s opaque payment channels weakened transaction monitoring and financial intelligence reporting. Strong KYB requires reliable verification of identity, beneficial ownership, source of funds, and source of wealth.<\/p>\n\n\n\n \u0627\u0637\u0644\u0639 \u0639\u0644\u0649 \u0627\u0644\u0645\u0632\u064a\u062f \u0645\u0646 \u0623\u062e\u0628\u0627\u0631 \u0645\u0643\u0627\u0641\u062d\u0629 \u063a\u0633\u0644 \u0627\u0644\u0623\u0645\u0648\u0627\u0644 \u0641\u064a ComplyCube \u0646\u0634\u0631\u0629 \u0625\u062e\u0628\u0627\u0631\u064a\u0629 \u0645\u0646 \u0625\u0635\u062f\u0627\u0631 \u0627\u0644\u062b\u0642\u0629<\/a>. \u0646\u0633\u062a\u0643\u0634\u0641 \u0623\u062d\u062f\u062b \u0627\u0644\u062a\u0637\u0648\u0631\u0627\u062a \u0641\u064a \u0645\u062c\u0627\u0644 \u0627\u0644\u062a\u062d\u0642\u0642 \u0645\u0646 \u0627\u0644\u0647\u0648\u064a\u0629 \u0648\u0645\u0643\u0627\u0641\u062d\u0629 \u063a\u0633\u0644 \u0627\u0644\u0623\u0645\u0648\u0627\u0644 \u0639\u0644\u0649 \u0645\u0633\u062a\u0648\u0649 \u0627\u0644\u0639\u0627\u0644\u0645. <\/p>","protected":false},"excerpt":{"rendered":" Australia’s Star Entertainment has been fined A$260 million for serious AML failures involving high-risk customers, inadequate due diligence and weak oversight. Explore AUSTRAC’s findings and key lessons for regulated businesses.<\/p>","protected":false},"author":27,"featured_media":36275,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-36268","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-anti-money-laundering"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t![\"Quote](\"https:\/\/www.complycube.com\/wp-content\/uploads\/2026\/10\/star-entertainment-austrac-statement-1024x577.png\")
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Major AML Exposure Findings in The Star<\/h2>\n\n\n\n
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Investigations Began Long Before the A$260 Million Fine<\/h2>\n\n\n\n
What Comes Next for AML Enforcement in Australia?<\/h2>\n\n\n\n
![\"\u0639\u0632\u0632](\"https:\/\/www.complycube.com\/wp-content\/uploads\/2025\/04\/contact-complycube-award-winning-aml-and-kyc-1024x577.png\")
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