Australian regulator initiates civil lawsuit against Star Entertainment

Australia’s financial crimes regulator has initiated a civil complaint against Star Entertainment Group (SGR.AX) for alleged failure to comply with anti-money laundering and counter-terrorism financing disclosure requirements.

The casino operator announced on Wednesday that the Australian Transaction Reports and Analysis Centre (AUSTRAC) will initiate civil penalty proceedings against two of Star’s subsidiaries, The Star Pty and The Star Entertainment Queensland Ltd.

However, according to Star, AUSTRAC did not identify the damages it was seeking in the aforementioned complaint.

Three years ago, Star’s larger rival Crown Resorts — recently acquired by Blackstone Inc (BX.N) — was deemed ineligible to hold gambling licenses due to money laundering, prompting several jurisdictions to initiate investigations.

In a year marked by probes and scrutiny of its operations for allegedly failing to prevent money laundering and illegal behavior, Star’s stock has declined by 28.8%.

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