ASIC begins cross examination of ex-Star CEO
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The news: Lawyers for the Australian Securities and Investments Commission (ASIC) have begun their cross-examination of former Star Entertainment Group chief executive Matthias Bekier.
Bekier responded to questions from barrister Ruth Higgins SC regarding the casino operator’s due diligence processes for junket operators following a KPMG report, as well as his delegation of customer eligibility assessments for a cheque-cashing facility to casino management.
He told the court that Star had been surprised by KPMG’s findings, which identified limitations in its due diligence practices and advised that a junket operator should be treated as a customer for anti-money laundering and counter-terrorism financing assessments.
"We ultimately accepted all findings," Bekier told the court, but added that Star "wanted to understand what had changed".
"Up until the receipt of the KPMG report, I thought we were doing a very good job," Bekier told the court.
"The KPMG report set a different bar," he said.
Bekier also gave evidence that he had believed credit reduced money laundering risks and that "cash is more problematic in the casino world than credit".
Bekier's cross-examination will continue on Thursday at 10:15am local time.
The context: ASIC announced the lawsuit in December 2022, targeting 11 current and former directors and officers of Star at the time, over alleged breaches of corporate duties linked to money-laundering risks.
ASIC has alleged that despite becoming aware of possible money laundering, executives failed to take action to terminate a relationship with Suncity or provide relevant information to the company's board.
A junket operator works with casinos to attract high-wealth individuals to gamble.
Shares in the casino operator have been automatically suspended from trading after the company failed to lodge its half-year report before a 28 Feb deadline.
Star Entertainment said earlier this week that it is "unlikely" to be in a position to lodge its first-half financial report, "unless, and until, it has secured a refinancing commitment that would enable The Star to refinance all of the group's existing corporate debt, as well as to provide additional liquidity".
The source: Federal Court of Australia
