The Star Entertainment Group, an Australian land-based operator, has issued a statement in response to media reports alleging money laundering activities. The company strongly refutes claims that it disregarded a KPMG report highlighting weaknesses in its operational procedures.
The Star Entertainment Group denies neglecting the KPMG report on anti-money laundering and counter-terrorism financing.
A joint investigation by the Sydney Morning Herald, The Age, and 60 Minutes was published over the weekend, accusing the Star Entertainment Group of enabling suspected money laundering, organized crime, extensive fraud, and interference within its casinos for an extended period. The investigation alleges that these activities occurred despite warnings about the inadequacy of the company’s anti-money laundering safeguards.
Previously, the Independent Liquor & Gaming Authority of New South Wales initiated an inquiry into the Star Sydney casino last month. The inquiry was prompted by concerns regarding the casino’s interactions with intermediaries and its anti-money laundering measures.
In its initial response to the media reports, the Star Entertainment Group expressed concern about certain assertions made in the media, which it deemed misleading. However, the company also stated its commitment to taking steps to address the allegations.
Stellar Entertainment has issued a statement in response to claims that it disregarded an audit report by KPMG concerning its anti-money laundering (AML) and counter-terrorism financing (CTF) protocols.
News reports indicate that the report compiled by KPMG in 2018 was kept secret and not adequately addressed, but Stellar Entertainment has refuted these claims, labeling them “false.”
Stellar Entertainment stated that it has thoroughly considered and taken action on the audit report, findings, and conclusions, adding that the company prioritized its updated AML/CTF program in October 2018 and is putting into practice a work plan to enhance its AML compliance framework.
The audit report and resulting findings have been shared with AML/CTF regulator Austrac and were mentioned in Stellar Entertainment’s submission to the Bergin Inquiry into competitor Crown Resorts. Stellar Entertainment also stated that the information has been given to independent auditors conducting a follow-up review for assessment during the next round of audits in 2020-21.
“Stellar Entertainment will provide an independent audit report of Stellar Entertainment’s AML/CTF program, along with information relating to the implementation of the improvement plan and current practices, as part of the five-year review of The Star Sydney by Senior Counsel Adam Bell, conducted under the Casino Control Act 1992 (NSW),” Stellar Entertainment said.
The examination, conducted by Star, revealed that KPMG had put forward a number of specific proposals that could be put into practice to more effectively pinpoint, handle, and reduce the risks associated with money laundering.
Star indicated that a strategy had been put in place to address all the suggestions brought up in the evaluation, which took place from the middle of 2018 to the beginning of 2020.
Star stated that the most recent regular independent evaluation of its anti-money laundering program commenced in late 2020, during which suggestions were made as part of an ongoing process of enhancement. The initial stage of the review was finished in July 2012, encompassing, but not limited to, examining the work plan completed in response to the 2018 review.
Star added that the examiners found that its anti-money laundering/counter-terrorism financing program was successful in attaining its goals, in line with applicable regulations, and had been effectively put into practice.
“Star remains dedicated to continuously enhancing its anti-money laundering compliance,” Star stated. “To this end, Star continues to invest in system, ability, and resource improvements.”
Sign up for the iGaming newsletter.