Australian casino The Star is continuing its partnership with the troubled Suncity despite a 2019 Hong Kong report that Alvin Chau had “very unsavory business associations” linked to the drug trade, money laundering and organized crime, according to an inquiry held earlier this week.
The casino’s chief financial crime officer Skye Arnott acknowledged the relationship.
According to the Hong Kong Jockey Club report, Suncity laundered about AUD2 million per day in cash from 2013 to 2015, noting that Chau was a “threat” and would pose “tangible criminal [and] reputational risks” for the club.
This includes proceeds of drug trafficking, according to the report.
“Alvin Chau is alleged to be a member of the Macau faction of the 14K triad society and a follower of former 14K leader Wan Kuok Koi (known as Broken Tooth Koi),” the report said.
It was only in 2020 that The Star increased its customer due diligence on Suncity and on the “unusual transactions” in Salon 95.
According to a report by The Sydney Morning Herald, junket mogul Chau has apparently enjoyed an AUD80 million check cashing facility at The Star, and has maintained his business with the casino despite warnings of his links to triads.
Speaking at the inquiry, Arnott conceded it was within her control to cease dealing with Suncity and Chau, also noting that she did not consider the source matter, which was an entertainment magazine, to be “relevant or helpful.”
The inquiry is ongoing as part of a regular review of The Star’s casino license. The inquiry is determining Star’s suitability to run its flagship casino in Sydney.
Last month, the inquiry heard that operator Star Entertainment Group disguised AUD900 million worth of Chinese debit card gambling transactions as hotel expenses, and then misled banks in an attempt to conceal the massive fraud, according to the Australian report.
Wealthy Chinese gamblers have allegedly been encouraged to deposit millions of dollars into a junket operator’s Macau bank account, a red flag in respect of money laundering controls.
Suncity has operated as a third party at Australian casino, The Star, via a “Suncity cage” because the operator lacked regulatory approval. LV
