The Star Entertainment Group Ltd (The Star) has provided for fines and penalties of $150 million from alleged non-compliance with anti-money laundering laws in its financial report for the half-year ended 31 December 2022 after ASIC raised concerns.
Following a review of The Star’s financial report for the year ended 30 June 2022, ASIC raised concerns that no provision had been recorded for likely fines and penalties (despite some uncertainties as to their amount) for non-compliance by The Star with Anti-Money Laundering and Counter-Terrorism Financing laws. This review was completed as part of ASIC’s financial reporting surveillance program. These alleged non-compliances are the subject of an AUSTRAC investigation.
ASIC’s financial reporting surveillance program aims to improve the quality of financial reporting and to ensure financial reports have been prepared in accordance with the law, supporting investor confidence and the integrity of Australia’s capital markets.
ASIC reminds preparers of financial reports that consideration should be given to the need for and adequacy of provisions. ASIC also recently emphasised the importance of making adequate provisions in financial reports (22-333MR).
