Sept 15 (Reuters) - Australia's Star Entertainment Group said on Thursday it will implement a comprehensive remediation plan to improve its governance, culture and controls, days after an inquiry found the casino operator unfit to hold a licence in Sydney.

The inquiry report, released on Tuesday, into alleged breaches of anti-money laundering laws and criminal infiltration has provided Australia's second biggest casino operator 14 days to convince New South Wales authorities that it should be allowed to keep its operating licence.

Star's shares rose 3.4% to A$2.77 after the announcement.

Interim chairman Ben Heap said the culture at the company needs to be transformed following the findings of the probe.

"Examples of actions we've taken to date include introducing stronger controls, enhancing our regulatory compliance functions and training, adding new members to our Board...voluntarily appointing an Independent Monitor to oversee our progress," Heap said in a statement.

Australia's casino sector has faced intense scrutiny over the last three years after Star's larger rival Crown Resorts was found unfit to hold gambling licenses on account of money laundering, prompting some states to launch investigations.

(Reporting by Riya Sharma; Editing by Subhranshu Sahu and Sriraj Kalluvila)