Star ordered to pay $260m penalty for AML/CTF breaches

The Federal Court on 28 October 2026 ordered The Star Entertainment Group to pay a $260 million penalty over breaches of the national anti-money laundering and counter-terrorism financing (AML/CTF) rules, according to a media release from the financial intelligence agency AUSTRAC. Justice Cameron Moore ordered that $195 million of the penalty be attributed to conduct in Sydney and $65 million to conduct in Queensland, with payment in four instalments over 19 months, ABC News reported.

AUSTRAC began legal action against Star in 2022, ABC News reported. AUSTRAC’s release says the Court found The Star did not keep an AML/CTF program that complied with the law, and did not adequately monitor customers for money laundering and terrorism financing risk. ABC News reported that the case centred on Star’s dealings with the Asian junket operator Suncity and its funder.

Why it matters

ABC News reported that AUSTRAC had sought a $400 million penalty, while Star had said a penalty above $100 million could force it into liquidation. Justice Moore found the $100 million figure too low and the $400 million figure too high, ABC News reported.

According to ABC News, the judge said the penalty had to deter Star from putting profit ahead of compliance with AML laws, while also taking the casino’s financial position into account. ABC News reported he said the fine would have been higher if not for significant remediation work under way, and that Star had already paid penalties for conduct that substantially overlaps with the conduct in these proceedings. AUSTRAC’s release puts those earlier penalties at $200 million, citing the judge.

AUSTRAC’s release says the contraventions included failures to verify customer information and source of funds, to conduct appropriate due diligence and to monitor customer activity. It says more than 1,200 customers were able to gamble through channels carrying a high money laundering or terrorism financing risk.

The release also quotes the Court on the scale of the business involved. It says revenue from junkets alone was over $1.4 billion, and revenue from high-risk customers over the period from November 2016 to November 2022 was approximately $1.33 billion on Star’s own calculation. The release adds that the Court did not treat those totals as the benefit Star gained from the contraventions.

ABC News reported that Justice Moore said the contraventions were serious and that their number was immeasurable. It also reported that the judge described turning a blind eye to customers who posed a money laundering or terrorism financing risk as a significant part of Star’s business.

The numbers

• $260m: total penalty ordered by the Federal Court on 28 October 2026
• $400m: penalty AUSTRAC had sought, per ABC News
• $100m: level above which Star said it could face liquidation, per ABC News
• $195m: portion attributed to conduct in Sydney
• $65m: portion attributed to conduct in Queensland, payable in four instalments over 19 months

What’s next

AUSTRAC chief executive Brendan Thomas said the penalty reflects the seriousness of the contraventions and builds on earlier state and Commonwealth fines to provide ongoing deterrence value. He said: “AUSTRAC will not tolerate companies putting profit over their obligations to the Australian community.” Thomas also said that Star has admitted deficiencies in its monitoring, so AUSTRAC cannot know how much money high-risk customers put through its casinos, according to the release.

ABC News reported that Star’s venues include Sydney, the Gold Coast and Brisbane, and that its casino licences in New South Wales and Queensland were suspended. The $65 million attributed to Queensland is part of the single $260 million penalty ordered on 28 October.

ABC News reported that in June, Star’s former chief executive and its lawyer received combined fines of more than $1.1 million under the Corporations Act, and were banned from holding corporate office for six and seven years respectively. ABC News also reported that a $300 million rescue package from Bally’s Corp and the Mathieson family saved the business from administration in April 2025. Star’s shares were placed on a trading halt before the decision, ABC News reported.

More Queensland property and compliance coverage is in today’s news.