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Star Entertainment's chief legal and risk manager says she cannot remember if she informed the gaming giant's board of misconduct claims related to what an inquiry heard was its "out of control" international rebate business.

Paula Martin, a senior manager at Star, on Wednesday spent a third day in the witness stand at an inquiry into the fitness of The Star Sydney - owned by ASX-listed Star - to hold a casino licence.

Counsel assisting Naomi Sharp SC showed Ms Martin an internal casino note from mid-2019 assessing the risk of the international rebate business, which outlined "areas of concern" relating, in part, to Marcus Lim, a senior Star manager at the time.

Those areas included, the inquiry was told, Mr Lim getting paid $50,000 for services, patrons of junkets refusing to come back to The Star due to concerns about Mr Lim, alleged misuse of patron "comp" by purchasing items such as handbags for website (https://www.kabbalah.info/) his girlfriend, and concerns about a "Suncity conflict".

"The allegation wasn't just about Marcus Lim there were all sorts of allegations about misconduct ... at this time wasn't there? Ms Sharp asked.

"Yes there's a list of allegations," Ms Martin replied.

"The international rebate business was just out of control at this time, wasn't it?" the barrister asked.

"No, that's not my description," Ms Martin said.

Internal casino minutes between August and December 2019 did not mention the "incredibly serious" claims, and Ms Martin could not recall if she told the board about the claims against Mr Lim, the inquiry was told.

Mr Bell submitted that if Ms Martin had in fact told the board, he would expect to find that in the minutes of the board, or its subcommittees.

"I would think that's most likely Mr Bell," she replied.

The senior casino lawyer was also quizzed over why she did not tell the board that Star retained a Hong Kong Jockey Club report critical of Suncity - a Macau-based junket operator backed by Alvin Chau, who was allegedly linked to Triads.

Also at issue, Ms Sharp said, was why the board was not made aware of a meeting between Star internal investigators and Australian Federal Police in 2019, where they were told Suncity was of "current interest to them".

"I don't believe that's entirely correct," the witness said.

Earlier, the inquiry was told that Ms Martin was made aware of a number of concerning activities by Suncity - at one point the largest junket operator The Star dealt with - in Salon 95, including a "pseudo casino cage" in the room.

The "myriad of transgressions" in the room also involved cash being exchanged for gaming chips, storing cash in sports bags on a balcony, and access to the room being granted to non-junket participants, the inquiry was told.

"Was it appropriate that the NSW regulator should have been alerted to these concerning transactions?" Ms Sharp asked.

"Yes Ms Sharp, I think it would have been beneficial," Ms Martin replied.

Evidence was also given on Star's use of China Union Pay debit cards at the casino in a process where gambling chip purchases were presented as hotel charges.

About $900 million flowed into the casino until the CUP process was stopped in 2020, the inquiry was told.

Ms Martin rejected claims it was "not far-fetched" that organised crime figures took advantage of the CUP process, calling it "not a characterisation I would use".

She also denied that the casino had, via the CUP card process, "left its doors wide open to organised crime", or "completely flouted" Chinese capital flight restrictions via the company's use of the CUP cards.

Asked about an April 2021 meeting and Star's intentions on dealing with junkets in the future, Ms Martin said "there was no concluded view".

The inquiry continues on Thursday.


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