The NSW Independent Liquor & Gaming Authority inquiry is probing whether The Star Sydney has been infiltrated by criminal activity such as money laundering, and if it is fit to keep its casino licence, following highly critical media reports.
Star's assistant group treasurer Paulinka Dudek, a senior manager responsible for compliance and risk management on casino bank accounts, said she completed annual online training about how to spot money laundering and terrorism financing, but had only limited knowledge of Australian law on the area.
One of the functions of the casino's treasury department is to monitor transactions and manage the flow of funds in and out of the venue, the inquiry was told on Thursday.
"Could you describe to us the level of your understanding of Australia's anti-money laundering and counter-terrorism financing regulatory framework?" counsel assisting the inquiry Naomi Sharp SC asked.
"Very basic," Ms Dudek replied.
Asked to explain the casino's "risk based" anti-money laundering program, Ms Dudek said it was about categorising individuals into low risk, medium risk and high risk and to "provide the reporting in that context".
She said she was aware of an obligation to act ethically in her role and "call out" any concerns about casino operations as part of a 'do the right thing' policy.
"I believe there is a hotline or an email address," she said.
Earlier, the inquiry was told allegations about the casino on the 60 Minutes television program and in newspaper reports would be "directly relevant" at the week-long hearing.
Those reports accuse The Star's owner, casino giant Star Entertainment, of enabling suspected money laundering, organised crime, fraud and foreign interference at its gaming facilities.
The casino's due diligence processes are also expected to be put under the microscope, as well as the venue's alleged links to "politically exposed" individuals.
Another issue set to be examined is the casino's "international rebate business" - known as junkets - that involved "huge" marketing efforts to attract VIP patrons, many from mainland China, to gamble at The Star.
Private gaming rooms known as salons, including one known as 'Salon 95' run out of the Darling Hotel in Sydney, are also set to get "close attention".
Also due to testify on Thursday are Star's former group treasurer Sarah Scopel and head of diversified industries and technology Tanya Arthur.
Among other witnesses set to appear is Chinese billionaire property developer Phillip Dong Fang Lee, who was reportedly a high roller at the casino.
Along with its "core" role of assessing the casino's suitability to operate, the inquiry will also assess how well the venue is doing on minimising gambling harm to individuals, families and the wider community.
A report by the inquiry's chair, Adam Bell SC, will be delivered in June.
Star Entertainment says it has an unwavering focus on preventing criminal activity at its casinos, which also include The Star Gold Coast and Treasury Brisbane.
Its larger rival, Crown Resorts, has also faced misconduct inquiries, which found criminals were taking advantage of its casinos, prompting two royal commissions and the resignation of most of its board.
