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By Mike Cherney
SYDNEY–Australian casino company Star Entertainment Group Ltd. said late Tuesday that assertions in a recent media article about its anti-money-laundering controls are incorrect, its latest response to a scandal that has sent its stock plummeting.
Star, which runs a casino in Sydney, said assertions that reports prepared by auditing firm KPMG were kept secret and not adequately acted on are incorrect. The reports, which relate to a regular independent review of Star’s anti-money-laundering and counter-terrorism-financing program, were instead considered by the board and acted on, Star said.
Star added that details of the review and resulting reports were shared with Australian regulators. Star said it will provide the reports and information about the implementation of improvement programs to the five-year review of its casino license that is currently underway in New South Wales state, which includes Sydney.
Star added that it remains committed to ongoing improvement of its anti-money-laundering compliance and that it is investing in improving its systems.
Star’s more detailed response comes shortly after the Sydney Morning Herald published an article that said Star has been enabling criminal activity despite warnings that anti-money-laundering controls were failing. Earlier, Star said it was concerned the media report was misleading.
A spokesman for Sydney Morning Herald publisher Nine Entertainment Co. had no immediate comment.
Media investigations into Star’s casino rival, Crown Resorts Ltd., sparked a flurry of regulatory action against that company and investors are concerned that Star could become the focus for additional scrutiny. Star’s shares have fallen 25% from A$4.28 at the end of last week to A$3.21 at Tuesday’s close.
Write to Mike Cherney at mike.cherney@wsj.com
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