Star Entertainment's chief financial crime officer was not made aware of concerns a Macau-based junket operator was "totally noncompliant" with an internal probe into a controversial VIP gaming room at Sydney's Star casino, an inquiry has been told.
The NSW Independent Liquor & Gaming Authority inquiry into The Star Sydney has so far prompted the resignation of Star CEO Matt Bekier, and sparked calls for a similar inquiry into the ASX-listed company's two Queensland casinos.
The inquiry is examining whether the Sydney casino has been infiltrated by criminal activity, and if its casino licence should be withdrawn.
Resuming for a fourth week on Monday, it continued hearing evidence from Star's chief financial crime officer Skye Arnott, who was quizzed over what she knew of an internal investigation into exclusive an gaming room known as Salon 95.
She said she was not aware of a Star investigator's view, in May 2018, that junket operator Suncity was "totally noncompliant" with requests for information about Salon 95.
She was also unaware of the investigator's opinion Suncity was running a business model "problematic for Star Entertainment with regard to AML (anti-money laundering) CTF (counter terrorism financing) laws".
"That was never made known to you at that time?" counsel assisting Naomi Sharp put to the witness.
"No," Ms Arnott replied.
The witness was also questioned over "concerning" CCTV footage taken from inside Salon 95 in April 2018, showing a Suncity representative taking bundles of cash from a black bag and placing them under a desk in the VIP room.
"You are concerned that the cash does not appear to have come from a junket participant?" Ms Sharp asked.
"Correct," Ms Arnott replied.
"Those are large concerns are they not?" Ms Sharp then asked.
"They are things that I would consider suspicious," Ms Arnott replied.
Ms Arnott, a former NSW Crime Commission employee, was told numerous times in 2018 and 2019 of money laundering concerns at Salon 95, the inquiry was told.
The inquiry has previously been told Star allowed Suncity to run an illegal cage inside Salon 95 even though the junket operator had no authority to do so.
Suncity's operations at The Star only came to an end following the arrest of the junket operator's financial backer, Alvin Chau, in November 2021.
Earlier, the inquiry was told Star Sydney put no limit on the number of gambling chips, "non-negotiable" chips, and plaques patrons walked out of the casino.
The practice led to money laundering risks as chips were "a good way to transfer value between people because they act as cash, and are easy to transport", the inquiry was told.
"Why, in view of that risk, does Star permit people to take chips and plaques out of the casino?" Ms Sharp asked the witness.
"Once they have purchased the chips they are the customer's to negotiate ... it's a challenging thing to manage," Ms Arnott replied.
The inquiry continues.
