(Reuters) – The Australian securities regulator on Tuesday started civil proceedings against 11 current and former directors of casino operator Star Entertainment Group Ltd for alleged shortcomings related to the risk of money laundering.
Casino operators in Australia have been dogged by damning reports of shirking anti-money laundering rules, dysfunctional governance and poor corporate culture, prompting authorities to seek stringent disciplinary actions.
The Australian Securities & Investments Commission (ASIC) on Tuesday alleged that Star Entertainment’s board and executives “failed to give sufficient focus to the risk of money laundering and criminal associations”.
The lawsuit includes claims against Star Entertainment’s board members between 2017 and 2019, and involves the company’s former managing director and chief executive, as well as a former chairperson.
Star Entertainment did not immediately respond to a Reuters request for comment on the ASIC action.
Last week, the Queensland government slapped penalties totalling A$100 million ($67.45 million) on the company and deferred the suspension of its casino licences for a year to monitor operations in the state.
($1 = 1.4826 Australian dollars)
(Reporting by Savyata Mishra in Bengaluru; Editing by Shinjini Ganguli and Shounak Dasgupta)
