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The Australian Transaction Reports and Analysis Centre (AUSTRAC) will commence civil penalty proceedings against two of Star’s units, The Star Pty and The Star Entertainment Queensland Ltd, the casino operator said on Wednesday.
Star, however, said AUSTRAC did not specify the damages it was seeking from the said lawsuit.
Australia’s casino sector has faced intense scrutiny over the last three years after Star’s larger rival Crown Resorts — recently bought by Blackstone (NYSE:BX) Inc — was found unfit to hold gambling licences on account of money laundering, prompting some states to launch investigations.
Star’s shares have dropped 28.8% in a year marked with investigations and scrutiny of its operations over its alleged failure to prevent money laundering and criminal activity.
AUSTRAC did not immediately respond to a request for comment.
