This was revealed during the final day of testimony in the NSW Authority’s review into The Star’s licence. The public hearings began on 17 March 2022.
Sharp stated that more “reflection and investigation” is needed for the operator in addition to the original review. She pointed out that appropriate compliance measures, including anti-money laundering (AML) and counter terrorism financing (CTF), were not implemented on time.
“We submit that the submission made by senior council for The Star and The Star Entertainment, claiming a strong foundation for proper compliance in relation to AML and CTF, should be rejected,” said Sharp.
Sharp emphasized that there has been an uplift in the AML and CTF framework since August 2018. However, she argued that compelling evidence is required to prove the current suitability of The Star and The Star Entertainment to operate.
According to Sharp, senior management members at The Star have repeatedly misled the ILGA. She stated that there has been a delinquent culture, a serious failure of the risk management framework, and an absence of a compliance culture regarding money laundering and counter terrorism financing obligations.
In addition, several negative changes have occurred at The Star and Star Entertainment since the review began in September 2021. There has been a significant number of resignations, especially from senior management. Misconduct areas have been suspended or ended, and steps are being taken to de-register the EEIS bank accounts.
During the hearings, it was revealed that management at The Star had made “misleading” statements to the bank regarding non-gambling transactions. The Star’s executive chair, John O’Neill, announced his resignation from the company’s board, which came just one week before he was scheduled to give evidence in The Star review.
