Australia’s Federal Court Finds Former Star Entertainment Executives in Breach of Corporations Act Over AML Failures

Australia's Federal Court finds former Star Entertainment CEO and Risk Officer liable for AML failures under the Corporations Act. Read the details of the ASIC ruling.

By: AXL Media

Published: Mar 6, 2026, 9:48 AM EST

Source: The information in this article was sourced from iGB

Personal Accountability for Systemic Failures

In a landmark judgment handed down this week, Justice Lee of Australia’s Federal Court ruled that the former CEO/Managing Director and the former Chief Legal and Risk Officer of The Star Entertainment Group breached Section 180 of the Corporations Act 2001. The court found that these individuals failed to take adequate measures to address money-laundering and criminal-activity risks at the casino operator. Critically, the ruling emphasized that the executives did not properly inform the board about these compliance issues, violating the statutory requirement to act with the degree of care and diligence expected of a reasonable person in their position.

A Four-Year Legal Battle

The proceedings, initiated by ASIC on December 12, 2022, originally targeted 11 former directors and officers. While the court held the top executive and legal officer accountable, the other nine directors were cleared of breaching their obligations. This distinction highlights the court's focus on those with direct oversight of risk and legal functions. The breaches could result in severe civil penalties, including fines of up to AUD 1.05 million ($730,000) per breach and potential disqualification from holding corporate directorships in the future.

Broader Context of AML Violations

This ruling is the latest chapter in a disastrous period for Star Entertainment. In June 2025, the Australian Transaction Reports and Analysis Centre (AUSTRAC) pushed for a $400 million fine against the operator following a sweeping investigation into Anti-Money Laundering (AML) violations. Those failings ranged from insufficient reporting protocols to a total lack of managerial oversight over a period of several years. The Federal Court's decision now adds personal legal liability to the massive corporate financial penalties already faced by the group.