Federal Court orders The Star to pay $260 million for AML/CTF breaches
AUSTRAC says the Court found the casino operator let high-risk customers gamble without properly establishing where their money came from. Justice Moore said The Star had already received penalties of $200 million for conduct that significantly overlaps with these proceedings.
What the Court found
The Court found The Star failed to maintain an AML/CTF program that complied with the law and failed to monitor customers to identify, mitigate and manage money laundering and terrorism financing risks. The Court found the non-compliance undermined the ability of AUSTRAC and law enforcement agencies to trace money to its source.
Justice Moore said a significant part of the business depended on turning a blind eye to customers who presented a high risk. The judge also noted that The Star's casino licences were suspended and that it has been under the supervision of a manager.
Which obligations it turns on
AUSTRAC lists failures to verify customer information and source of funds, conduct appropriate due diligence and monitor customer activity. It names channels that facilitated third-party transactions and cash deposits where the third party's identity was not recorded, and more than 1,200 customers able to gamble through high-risk channels.
The program, due diligence and monitoring obligations in the finding bind every reporting entity, including the firms AUSTRAC has regulated since 1 July 2026. For current reporting entities, the program and due diligence changes started on 31 March 2026, unless deferred under the transitional rules.
What to check now
Start from the list of customers the business rates high risk, and run each check against that list.
- High-risk customers: verified identity and a documented source of funds recorded on each customer file
- Third-party payments: the payer's identity recorded against each transfer or cash deposit received
- Ongoing monitoring: each high-risk customer's activity in the past quarter, who reviewed it and what was decided
Sources
- PrimaryAUSTRAC, The Star ordered to pay $260 million for serious AML/CTF breaches (28 October 2026)Retrieved 30 Oct 2026
- PrimaryAUSTRAC, About the AML/CTF reformsRetrieved 30 Oct 2026
- PrimaryAUSTRAC, Your obligationsRetrieved 30 Oct 2026
- PrimaryAUSTRAC, Overview of ongoing customer due diligenceRetrieved 30 Oct 2026
