Former Executives at Australian Casino Group Fined $1.1M Over AML Failures

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Australia’s Federal Court has fined two former senior executives of The Star Entertainment Group a combined A$1.1 million (approx. US$780,000) over failures to manage and escalate money laundering and criminal activity risks.

Former chief executive Matthias Bekier was ordered by the court to pay A$700,000 (approx. US$500,000) and was disqualified from management positions for six years. Former chief legal and risk officer Paula Martin was given an A$400,000 penalty (approx. US$280,000) and a seven-year management ban.

The court had previously found that both executives breached their duties under section 180 of Australia’s Corporations Act. The findings mainly concerned Star’s dealings with gambling junket operator Suncity, deficiencies identified in reports on the casino group’s anti-money laundering controls, and the impermissible use of China UnionPay cards by customers.

The Australian Securities and Investments Commission (ASIC) said Bekier failed to properly address serious risks and ensure key issues were escalated to Star’s board. Martin was found to have failed to adequately inform and advise the board, while also being involved in misleading communications to National Australia Bank about the use of UnionPay cards by Star customers.

Justice Michael Lee said the conduct represented failures by senior officers of a casino operator and found that neither executive had developed sufficient insight into the seriousness or real remorse. However, he said the penalties were moderated to maintain parity with more lenient outcomes previously agreed by ASIC for two other former Star executives.

The ruling follows further regulatory action against Star Sydney earlier this month. The NSW Independent Casino Commission imposed A$10 million (approx. US$7 million) in fines and required a further A$5 million (approx. $3.5 million) remediation fund after identifying thousands of compliance breaches, including systemic failures in financial crime risk management.