'High risk': The Star's $167m credit to money launderer
These details and many more have been exposed as financial watchdog AUSTRAC pursues the embattled casino giant in the Federal Court.
The Star made "innumerable contraventions" of Australian anti-money laundering laws through its conduct, including a willingness to do business with 117 high-risk customers, barrister Daniel Tynan told a Federal Court hearing on Thursday.
The casino has admitted that 70 of these customers - who were junket funders, operators or players - each posed a high money laundering risk.
"They would have the opportunity to gamble that money, get the returns, wash it, do it again," Mr Tynan told Justice Cameron Moore.
One of these customers, Suncity junket operator Alvin Chau, was provided with credit of up to $266.67 million.
Chau funded at least 3690 junket programs at The Star's Sydney casino, bringing in a turnover of about $12.6 billion.
Despite media reports linking him to overseas crime syndicates, The Star continued to engage with the Suncity head, Mr Tynan said.
It was only after Chau was arrested by Macau police and hit with a number of charges - including money laundering - that the casino stopped dealing with him, the court has heard.
Another customer was given almost $167 million in credit despite The Star knowing from at least 2014 that he had been involved in alleged money laundering, Mr Tynan said.
The casino also facilitated high-risk transactions from 1221 customers who transferred money in and out through channels that obscured their identity, the court was told.
Staff at EEIS, a Macau-based subsidiary of The Star, wrote up falsified letters for local customers wanting to send funds through the Bank of China directly to the casino, Mr Tynan continued.
These letters contained false claims about the source of the funds being deposited, the barrister said.
Almost $990 million in deposits were made through The Star's hotel debit cards, allowing gamblers to transfer money directly to the casino without going through an Australian bank.
The cards also allowed gamblers in countries like China with restrictions on gambling to disguise their transactions by claiming they were for other purposes like hotel accommodation, Justice Moore was told.
The Star advanced money to customers who complained about the 24 to 48-hour waiting period before funds hit their accounts.
Individuals could also withdraw cash directly, Mr Tynan said.
"This is coming in anonymously, taken out in cash - it can be used for anything."
AUSTRAC is seeking $400 million in penalties over the breaches while the casino has argued it can only pay $100 million without being pushed into administration.
In April, the failing casino business received a $300 million rescue package from US gaming giant Bally's Corporation.
The hearing continues on Friday.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sydney Morning Herald
an hour ago
- Sydney Morning Herald
Fresh ASX record high approaches 9000 milestone; Ampol surges on $1.1b deal; Baby Bunting soars
Welcome to your five-minute recap of the trading day. The numbers The Australian sharemarket hit a fresh record high every day this week and is closing in on the 9000 milestone, with Friday's session carried by energy, banking, and mining giants. The S&P/ASX 200 gained 64.8 points, or 0.7 per cent, to close at 8938.6, with each day this week finishing higher than the last. Friday's gains came despite a middling session on Wall Street driven by a disappointing report that said US inflation at the wholesale level was worse last month than economists expected. The lifters Financials were one of the best-performing sectors of the day, climbing nearly 1.1 per cent. The big banks, which were mixed earlier in the day, all finished higher: Westpac gained 2.1 per cent, ANZ Bank rose 1.8 per cent, NAB added 0.8 per cent and even the Commonwealth Bank rose 0.6 per cent. Mining was another outperforming sector, finishing 1.1 per cent higher. Rio Tinto gained 1.4 per cent and Fortescue rose 1.3 per cent, while BHP lifted 1.1 per cent. Loading Energy stocks also rose (1.1 per cent). Santos added 1.8 per cent and Woodside added 0.2 per cent. Petrol and diesel supplier Ampol jumped 7.7 per cent after announcing a major expansion plan with the acquisition of British fuel giant EG Group's Australian petrol station network. If the $1.1 billion deal gains regulatory approval, Ampol, formerly known as Caltex Australia, would add EG's 500 fuel sites to its business, enabling it to fast-track the roll-out unstaffed, self-service petrol stations under its U-GO brand.
Sky News AU
2 hours ago
- Sky News AU
Harvey Brunswick Leschenault Football Club coach John Baggetta sacked over derogatory comment
A football coach has been sacked over a sexist and derogatory comment he made on social media about influencer Tammy Hembrow. The Harvey Brunswick Leschenault (HBL) Football Club in WA's South West released a statement on Friday saying coach John Baggetta had been terminated as league coach over a social media post. 'We do not condone these comments, they do not reflect the values or standards of the HBL Football Club at any level,' a statement from the club read. The comment was allegedly made on a post about Hembrow going on a date with AFL star Bailey Smith. An online feminist page shared the comment in a post about 'disgusting misogynist slurs by Australian men directed at Tammy Hembrow after she went on a date.' The post highlighted the football coach was a mentor to young men who shaped their points of view. HBL said in a statement its football community and others thought the comment was inappropriate and should not be tolerated. 'We are incredibly proud to have a women's team, female representation on our board and women actively involved in our club,' the statement read. 'We have consulted with our women's side and we are committed to offering them and all the females in our club any support necessary.' Mr Baggetta said the comment had nothing to do with HBL and it was a mistake. 'It's not what I stand for, I have apologised and will move on to do better,' he said. Originally published as Harvey Brunswick Leschenault Football Club coach John Baggetta sacked over derogatory online comment about Tammy Hembrow
Perth Now
4 hours ago
- Perth Now
China hits back at ASIO over spying claims
Beijing has hit back at Australian claims China is spying on Australia, saying the accusations were 'groundless' and accusing Australian intelligence agencies of operating in China. China's Ministry of State Security on Friday released a statement via its official WeChat account, appearing to take issue with recent events in Australia, including a major speech by ASIO boss Mike Burgess. 'Australian intelligence agencies advocated the 'serious threat' posed by foreign espionage activities to Australia, and even packaged themselves as innocent 'victims' in groundless accusations of 'Chinese espionage threat',' the Chinese ministry's statement said. 'In recent years, China's state security organs have successively cracked a number of espionage cases against China instigated by Australian intelligence agencies in accordance with the law, effectively safeguarding China's sovereignty, security and development interests.' The statement comes just a month after Prime Minister Anthony Albanese undertook a six-day state visit to China, as his government seeks to normalise relations with Beijing after several tense years. Prime Minister Anthony Albanese met with Chinese President Xi Jinping during his official visit to China in July. PMO Credit: Supplied The statement also follows a speech by Mr Burgess, Australia's chief spy, on July 31, where he again identified China as being among the top three countries spying on Australia. Mr Burgess revealed ASIO had disrupted 24 'major espionage and foreign interference' operations in the past three years alone. 'Nation states are spying at unprecedented levels, with unprecedented sophistication,' he said. 'ASIO is seeing more Australians targeted – more aggressively – than ever before.' While AUKUS and military technology secrets were targets, Australia's intellectual property and cutting edge research was also in the sights of foreign agents. And earlier this month, the Australian Federal Police charged a Chinese national with reckless foreign interference after she was allegedly tasked by China to spy on a Canberra Buddhist group. China has taken a swipe at claims by ASIO boss Mike Burgess that Beijing is actively spying in Australia. NewsWire / Martin Ollman Credit: News Corp Australia The woman was arrested under the Counter Foreign Interference Taskforce and charged with reckless foreign interference. The crime carries a maximum penalty of 15 years imprisonment. Mr Burgess said at the time he was proud of the significant contribution ASIO had made on the matter. 'Foreign interference of the kind alleged is an appalling assault on Australian values, freedoms and sovereignty,' Mr Burgess said. 'In this year's annual threat assessment, I called out these types of activities and put perpetrators on notice by stating, 'we are watching, and we have zero tolerance'. 'Anyone who thinks it is acceptable to monitor, intimidate and potentially repatriate members of our diaspora communities should never underestimate our capabilities and resolve.'
