Star Entertainment Group, an Australian firm, has further addressed media reports accusing it of money laundering, rejecting claims that it disregarded a KPMG report outlining weaknesses in the company.

The group expressed worry about the accusations and stated it would take action to address them. The accusations arise from a joint investigation by the Sydney Morning Herald, The Age, and 60 Minutes, which accused Star Entertainment Group of permitting suspected money laundering, organized crime, large-scale fraud, and interference at its casinos for years, despite warnings that its anti-money laundering controls were failing.

The investigation follows the Independent Liquor and Gaming Authority in New South Wales’ decision last month to examine The Star Sydney casino, raising concerns about its dealings with VIP rooms and anti-money laundering measures.

In its initial response to the reports, Star Entertainment Group said it was “concerned” by some statements in the media that it deemed “misleading,” but also stated it would take steps to address the accusations.

The Starlight Entertainment Group has refuted claims that it disregarded a study by KPMG, a firm specializing in auditing, taxation, and advisory services, concerning the group’s anti-money laundering (AML) and counter-terrorism financing (CTF) protocols.

News outlets have alleged that the study, produced by KPMG in 2018, was hidden and not adequately addressed. However, Starlight Entertainment Group has labeled these accusations as “untrue.”

Starlight Entertainment Group stated that it had examined the study, its findings, and conclusions, and had taken appropriate action. The company added that it prioritized an updated AML/CTF program in October 2018 and is currently implementing a work plan to enhance its anti-money laundering compliance structure.

Details of the review and the resulting report have been shared with the AML/CTF regulator, Austrac, and mentioned in Starlight Entertainment Group’s statement on the Bergin inquiry into rival Crown Resorts. Starlight Entertainment Group also stated that the information had been provided to independent reviewers conducting a follow-up review to inform assessments undertaken during the next round of reviews in 2020-21.

“Starlight Entertainment Group will provide the independent review report of its AML/CTF program, as well as information relating to the implementation of improvement plans and current practices, to the five-year review of The Star Sydney by Senior Counsel Adam Bell, in accordance with the Casino Control Act 1992 (NSW),” Starlight Entertainment Group stated.

In its evaluation report, Star declared that KPMG had provided numerous concrete suggestions that Star could put into practice to more effectively recognize, manage, and lessen money laundering dangers.

Star declared that it had begun a strategy to address all recommendations made in the audit, which spanned from the middle of 2018 to the beginning of 2020.

Star stated that its anti-money laundering program’s most recent regular independent evaluation commenced in late 2020, which resulted in suggestions for ongoing improvement. The initial stage of this assessment was finished in July 2012 and included, but was not limited to, a review of the work plan completed in response to the 2018 assessment.

Star added that the evaluators found its anti-money laundering/counter-terrorism financing program to be successful in achieving its goals, in line with applicable regulations, and effectively implemented.

“Star remains dedicated to continually enhancing its anti-money laundering compliance,” Star stated. “To this end, Star continues to invest in enhancements to its systems, abilities, and resources.”

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