Multimillion-dollar transactions at The Star caught attention of China’s central bank: inquiry

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The review by the NSW Independent Liquor & Gaming Authority was launched late last year to assess whether The Star is fit to hold its licence. It will probe allegations by The Sydney Morning Herald, The Age and 60 Minutes of money laundering, criminal infiltration and wide-scale fraud at the Pyrmont casino.

The inquiry on Friday heard evidence from Ms Arthur, NAB’s head of Diversified Industries and Technology in Corporate and Institutional Banking, who until last Friday managed the casino group as a client.

Ms Arthur said she understood CUP card transactions were taken at the hotel and transferred across to a patron account to be spent on accommodation, restaurants, jewellery, cars and other expenses and that she was directly told there was no gambling component to any of the transactions.

The inquiry also heard NAB maintained a number of bank accounts for a Star Entertainment subsidiary called EEI Services Hong Kong Limited, a money lending business that offered remittance services to clients of The Star.

Ms Arthur was asked to explain email correspondence she had with The Star querying deposits by money service businesses in the account, describing them as inconsistent with how the casino had explained the account.

“National Australia Bank generally does not like the risk profile of money services businesses, particularly because they are high risk and give rise to potential money laundering.”

Money service businesses facilitate payments internationally, on behalf of third parties, which can make it difficult to determine the source of funds.

Ms Arthur said when NAB was required to conduct regular reviews of its client’s anti-money laundering procedures and obligations, The Star “cited confidentiality concerns in relation to the provision of its AML program… and any independent auditor reports.”

It meant she was never given access to a 2018 KPMG audit, made public by The Age, Sydney Morning Herald and 60 Minutes late last year, warning that Star was failing to address money laundering risks in its casinos, she said.

Ms Arthur also described a meeting on October 31, 2019 with Star executives, including Mr Theodore, in which NAB was told the casino had withdrawn exclusive access to one of its VIP rooms previously provided to a junket operator associated with notorious high-roller tour operator Suncity.

However, she said she was not told The Star was then allowing Suncity branding to be displayed on televisions in another junket room.

The inquiry before Adam Bell, SC, continues.

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