The Star Casino Faces AUSTRAC Penalties Over Money Laundering Breaches
The Star Casino Faces AUSTRAC Penalties Over Money Laundering Breaches
1
⚠ The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
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
Please Note: If this information affects you, seek advice from a licensed professional.
The Boating Industry Association Ltd (BIA) has recently issued a compelling appeal to all levels of Australian government, emphasizing the urgent need for strategic support to bolster the nation's esteemed marine manufacturing and recreational boating sector. This call to action arises amidst a significant skills shortage that poses a threat to the industry's economic vitality and growth potential. - read more
At the 2025 Sydney Boat Show, the Boating Industry Association (BIA) unveiled the National Recreational Boating Statement, providing a comprehensive overview of the sector's current status and future projections. This landmark report highlights the substantial economic and social contributions of Australia's marine industry and outlines ambitious growth forecasts leading up to 2030. - read more
In a significant development for Australia's naval defense strategy, the Australian Government has officially selected Japan's New FFM design for its new general-purpose frigate program. This decision marks a pivotal step in enhancing the Royal Australian Navy's capabilities and underscores the strengthening defense collaboration between Australia and Japan. - read more
Australia's marine industry has achieved a remarkable economic milestone, with its output soaring to $229 billion in 2023. This 19% increase from previous years underscores the sector's robust growth and its pivotal role in the national economy. - read more
Since March 2025, South Australia's coastal regions have been grappling with a harmful algal bloom (HAB) that has had profound effects on the marine environment and associated industries. This event has led to significant fish kills, adversely impacting the fishing and aquaculture sectors, as well as deterring beachgoers and affecting tourism operators along the affected coasts. - read more
Rhodian Group, an incubator of underwriting agencies in Australia, has announced the launch of its third agency, Marinex Underwriting. Backed by global specialty insurance distributor Amwins, Marinex is a shared equity marine underwriting agency co-founded by national relationship manager Janelle Karnib, CEO Chris Kelly, and Ainsley Smith. - read more
Are you dreaming of setting sail on your very own boat? While the freedom and adventure of boating are incredibly enticing, it's essential to ensure you're financially prepared before taking out a boat loan. - read more
Refinancing a boat loan can be a strategic financial move, enabling boat owners to reap the benefits of lower interest rates, reduced monthly payments, or shorter loan terms. The concept of refinancing involves replacing your existing loan with a new one, often with more favorable conditions that better suit your current financial situation. - read more
Investing in a fishing boat can be an exciting and rewarding experience, but it's important to make sure you're getting the most value for your money. There are several key factors to consider when buying a fishing boat, including your specific needs, budget, and financing options. It's also important to research boat brands and negotiate the sale to ensure you're getting a fair price. - read more
Purchasing a boat is an exciting venture, but it usually requires a substantial financial commitment. For many Australians, securing a boat loan is a practical way to make this dream a reality. - read more
Australia is home to some of the most breathtaking coastlines in the world. Stretching over 25,000 kilometers, Australia's diverse coastal landscape offers something for everyone, from serene beaches to rugged cliffs and vibrant coral reefs. This vast and beautiful coastline is a treasure waiting to be explored, making it a perfect destination for holidaymakers looking to experience the magic of the sea. - read more
Welcome to the world of nautical adventure, where the allure of the sea beckons many Australians to consider the freedom and enjoyment that comes with owning a boat. The image of setting sail on the azure waters is not just a dream; for some, it's a lifestyle choice that embodies exploration and relaxation. - read more
Start Here
Quotes are offered free & without obligation. We respect your privacy.
Knowledgebase
Private Mortgage Insurance (PMI): A type of insurance that a borrower might be required to purchase as a condition of a conventional mortgage loan, if the down payment is less than 20% of the property value.
