Personal Loan Finance Online :: News
SHARE

Share this news item!

The Star Casino Faces AUSTRAC Penalties Over Money Laundering Breaches

The Star Casino Faces AUSTRAC Penalties Over Money Laundering Breaches

The Star Casino Faces AUSTRAC Penalties Over Money Laundering Breaches?w=400
The Star Casino is embroiled in legal difficulties after allegations emerged in a Federal Court involving their facilitation of risky financial transactions, including offering massive gambling credits to individuals known for money laundering.
This follows financial watchdog AUSTRAC's pursuit of legal action against the casino.

In a court session, barrister Daniel Tynan highlighted the casino's significant failures to adhere to Australian anti-money laundering regulations. In particular, The Star reportedly conducted business with 117 customers deemed as high-risk, of which 70 were heavily involved in activities presenting high money laundering risks.

Of particular concern was The Star's engagement with Alvin Chau, a prominent Suncity junket operator. Despite media associations with international criminal syndicates, The Star issued him a credit ceiling of approximately $266.67 million. Chau reportedly managed to amass a $12.6 billion turnover from 3690 junket operations at The Star’s Sydney venue.

The casino allegedly disregarded Chau's questionable activities until his arrest by Macau authorities on money laundering charges–which subsequently prompted The Star to sever connections with him.

Additional revelations allege that The Star provided roughly $167 million in credit to another customer involved in similar illicit finance activities since 2014. The Star also enabled transactions through 1221 customer channels designed to obscure the individuals' identities.

EEIS, a Macau-based arm of The Star, is accused of aiding these transactions by creating fraudulent documentation for clients wishing to direct funds via the Bank of China, facilitating a near $990 million inbound flow without involving Australian banks.

Justice Cameron Moore heard that these manipulations disguised gambling transactions under the pretense of services like hotel accommodation, exploiting jurisdictions with strict gambling regulations like China. In addition, the casino offered immediate cash withdrawals as funds were deposited anonymously and swiftly converted into cash.

The courtroom expose regarding The Star unveils systemic breaches that not only highlight glaring compliance gaps but also reflect negatively on Australia's financial safeguards against illegal fund movements. Such extensive contraventions expose shareholders and remaining stakeholders to reputational damage and potential financial fallout.

The Star’s controversies also raise concerns among Australian financial entities about maintaining robust practices for preventing illicit financial activities. It necessitates increased vigilance among casinos and financial operators to ensure adherence to anti-money laundering legislation.

AUSTRAC is seeking a hefty $400 million in penalties against The Star, while the casino contends it can afford no more than $100 million without risking administration. This contention highlights the financial crunch The Star faces, following a recent $300 million investment from US-based Bally's Corporation, aimed at stabilising its operations.

As the legal proceedings continue, it puts considerable pressure on The Star to reformulate its compliance strategies and rebuild trust with regulators and the public. Financial experts suggest that broader repercussions might prompt stringent regulatory reforms targeting casinos, ensuring tighter scrutiny over financial dealings and enhanced inter-agency collaborations to deter money laundering activities.

Published:Friday, 6th Jun 2025
Source: Paige Estritori

Share this news item:

Finance News

US Involvement in Israel-Iran Conflict Sparks Financial Market Concerns US Involvement in Israel-Iran Conflict Sparks Financial Market Concerns
23 Jun 2025: Paige Estritori

The escalating likelihood of the United States engaging militarily in the Israel-Iran conflict has raised alarm among investors, potentially leading to significant market volatility. This concern was highlighted by the global financial advisory firm, deVere Group, as tensions heighten in the Middle East. - read more
Global Markets Brace for Oil Price Surge Following US Strike on Iran Global Markets Brace for Oil Price Surge Following US Strike on Iran
23 Jun 2025: Paige Estritori

The recent US military attack on Iranian nuclear facilities has raised expectations of a significant oil price spike as global markets prepare to resume trading. Announced by former President Donald Trump, the attack marks an increased US involvement in the Middle East, which analysts believe could lead to heightened volatility across financial markets. - read more
Trump Mulls Change of Heart on Firing Fed Chair Powell Trump Mulls Change of Heart on Firing Fed Chair Powell
21 Jun 2025: Paige Estritori

US President Donald Trump is once again contemplating the dismissal of Federal Reserve Chair Jerome Powell, whom he has criticized for not lowering interest rates. Trump expressed his dissatisfaction with Powell's decisions in a Truth Social post, suggesting he might change his mind about firing him. Despite acknowledging that his strong criticisms make Powell's task challenging, Trump remains focused on his agenda for reduced rates, especially with Powell's term set to end in May 2026. - read more
APRA Clarifies HELP Debt Considerations in Home Loan Assessments APRA Clarifies HELP Debt Considerations in Home Loan Assessments
20 Jun 2025: Paige Estritori

The Australian Prudential Regulation Authority (APRA) has released pivotal updates to the Prudential Practice Guide APG 223 and Reporting Standard ARS 223.0, focusing on how Authorised Deposit-taking Institutions (ADIs) should integrate Higher Education Loan Program (HELP) debt into home loan evaluations. The changes are aimed at enhancing regulatory clarity and acknowledging the individual circumstances of borrowers, including the nuances of their HELP debts, without compromising prudent lending practices. - read more


Personal Loans Articles

Unlock Better Loan Options: Quick Fixes for Your Credit Score Unlock Better Loan Options: Quick Fixes for Your Credit Score
Your credit score plays a crucial role in your financial journey, especially when it comes to obtaining loans in Australia. It's essentially a numerical representation of your creditworthiness and helps lenders assess the risk of lending you money. - read more
Smart Strategies for Managing Your Loan Repayments Smart Strategies for Managing Your Loan Repayments
Managing your loan repayments wisely is an essential aspect of financial health. When you stay on top of your obligations, it can lead to improved credit scores and financial freedom. This process involves more than just paying your monthly dues on time; it also includes planning and strategizing to make the most of your financial resources. - read more
Refinancing Your Loan: Is It the Right Move for You? Refinancing Your Loan: Is It the Right Move for You?
Loan refinancing is the process of replacing an existing loan with a new loan, usually with better terms. This financial strategy can be applied to a range of loans including mortgages, car loans, and personal loans. By refinancing, borrowers aim to achieve a more favourable interest rate, adjust the loan term, or consolidate debts. - read more
Loan Eligibility and Approval: What You Need to Know Loan Eligibility and Approval: What You Need to Know
Navigating the world of personal loans in Australia can be daunting, but understanding the basics of loan eligibility and approval is essential. Personal loans can be a valuable financial tool, helping you manage unforeseen expenses or consolidate debt. However, securing a loan is often dependent on a variety of factors, and being prepared can make all the difference. - read more
Unlock Better Loan Options: Quick Fixes for Your Credit Score Unlock Better Loan Options: Quick Fixes for Your Credit Score
Your credit score plays a crucial role in your financial journey, especially when it comes to obtaining loans in Australia. It's essentially a numerical representation of your creditworthiness and helps lenders assess the risk of lending you money. - read more
Refinancing Your Loan: Is It the Right Move for You? Refinancing Your Loan: Is It the Right Move for You?
Loan refinancing is the process of replacing an existing loan with a new loan, usually with better terms. This financial strategy can be applied to a range of loans including mortgages, car loans, and personal loans. By refinancing, borrowers aim to achieve a more favourable interest rate, adjust the loan term, or consolidate debts. - read more
Your Guide to Debt Consolidation Loans in Australia Your Guide to Debt Consolidation Loans in Australia
Debt consolidation loans are a financial strategy many Australians use to manage their debt more effectively. Essentially, they allow you to combine multiple debts, such as credit cards, personal loans, and other liabilities, into a single loan with one monthly payment. This can make it easier to manage your finances and could potentially reduce the amount of interest you pay over time. - read more
Are Unsecured Loans the Safer Choice? Weighing Your Options Are Unsecured Loans the Safer Choice? Weighing Your Options
Unsecured loans are a type of lending product that allow borrowers to obtain funds without the need to offer collateral. This means that the loan is not tied to any physical asset, such as a house or car, which can be seized by the lender if the borrower defaults. - read more


Free Assessment

Loan Amount:
Postcode:
All quotes are provided free (via our secure server) and without obligation. We respect your privacy.

Knowledgebase
Volatility:
A statistical measure of the dispersion of returns for a given security or market index. Higher volatility indicates higher risk.