Oct 29 (Reuters) – Australia’s Star Entertainment said on Thursday it would accept a court-imposed penalty of A$260 million ($183.6 million) for breaching anti-money laundering and counter-terrorism financing laws.
The beleaguered casino operator said the payment would not affect its ability to continue as a going concern.
• The penalty, to be paid in four installments over 19 months, stems from a civil lawsuit brought by the Australian Transaction Reports and Analysis Centre (AUSTRAC) in 2022, which alleged Star entities failed to comply with anti-money laundering and counter-terrorism financing regulations
• The company said the penalty was materially in line with provisions it had already recorded
• “Given that the current ownership and management team had nothing to do with the actions that gave rise to the proceedings, we commend the work of AUSTRAC and the Federal Court,” Chairman Soo Kim said
• Star said it was continuing discussions with US-based private credit investment manager WhiteHawk regarding the $390 million credit facility agreed in May and remained confident the facility would stay available
• Shares resumed trading after a halt and rose as much as 9.6% to A$0.143 on Thursday
• Earlier this week, Star swung to a profit for the first time in nearly a year, helped by strong performances at its Sydney and Gold Coast sites and cost-saving measures
($1 = 1.4162 Australian dollars)
(Reporting by Sherin Sunny in Bengaluru; Editing by Sherry Jacob-Phillips)
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