A senior Star Entertainment lawyer has told an inquiry into The Star Sydney that he failed at times to live up to the casino operator's value to "do the right thing".

The NSW gaming regulator's inquiry, now in its fourth week, is probing whether The Star Sydney has been infiltrated by crime, and if it is fit to retain its casino licence.

It has so far prompted the resignation of Star chief executive Matt Bekier, and sparked calls for a similar inquiry into the company's two Queensland casinos.

Star corporate general counsel Oliver White took the stand on Tuesday afternoon and was asked if he had reflected on the company's value to "do the right thing".

"I have," Mr White told counsel assisting Naomi Sharp.

"Do you think you've acted consistently with that value at all times?" the barrister then asked.

"I'm aware that I have probably failed to live up to that at times," he replied.

The inquiry was told Mr White reported to Star's group general counsel Andrew Power, and was one of around 11 or 12 internal lawyers at Star Entertainment.

Questioned by Ms Sharp, Mr White denied casino documents were marked "confidential and privileged" to shield them from production to the regulator.

"That's not my recollection, no," he said.

He also denied inviting Star colleagues to mark communication with him as privileged and confidential, irrespective if they were actually seeking legal advice.

"I admit it's quite clumsy and ... totally accept I may have been mistaken," he said.

Earlier, Star's chief financial crime officer Sky Arnott said she may have shredded a Hong Kong Jockey Club report detailing alleged links of an Macau-based junket operator Suncity to triads, drug trafficking and money laundering.

Suncity ran an illegal cage - a desk where cash is transferred for chips - inside VIP gaming room Salon 95 at The Star Sydney, the inquiry has previously heard.

Ms Arnott received a paper copy of the HKJC report, probably in 2019, alleging the backer of Suncity, Alvin Chau, had "very unsavoury business associations" linked to the drug trade, money laundering and organised crime, the inquiry was told.

"Despite the information contained in that report that was known to you ... you paid very little heed to that report," Ms Sharp put to the witness.

Ms Arnott replied that she could potentially have investigated some areas of the report "more fully" but in other areas "some of the issues were perhaps overstated".

Adam Bell, who is helming the inquiry, asked Ms Arnott what happened to her copy of the report, with Ms Arnott replying: "I believe I either handed it back to the person who gave it to me or I probably would have put it in the shredder."

"The shredder?" Mr Bell asked.

Ms Arnott replied she had "no way of securing" the paper-based report copy.

The inquiry was told Ms Arnott made no mention of receiving the report in her statement to the probe, with Ms Sharp accusing the witness of a "technical and narrow" approach that left the inquiry to "work out what the real situation was".

"No, I disagree," Ms Arnott said.

Quizzed over exactly when she became aware of the report, Ms Arnott replied: "I just don't remember, I'm sorry."

Ms Arnott was asked why a "risk paper" to the Star Entertainment board following critical media coverage of Crown Resorts made "no mention whatsoever" of concerning transactions in Salon 95 in 2019, despite a money-laundering risk.

"My understanding (is) that information in relation to Salon 95 and Suncity was being sent through other channels," she said.

The inquiry continues on Wednesday.

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