SkyCity Adelaide agrees to penalty for AML Breaches

The casino operator reached a joint decision with the Australian Transaction Reports and Analysis Centre (AUSTRAC).

Australia.- SkyCity Adelaide and the Australian Transaction Reports and Analysis Centre (AUSTRAC) have jointly submitted a proposed AU$67m (US$44.5m) penalty to the Federal Court of Australia to address the casino’s breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). A court hearing is scheduled for June 7 to review the proposed settlement.

AUSTRAC initiated Federal Court action against SkyCity Adelaide in December 2022, alleging systematic non-compliance with anti-money laundering and counter-terrorism financing laws. According to the regulator, the casino permitted 59 high-risk customers to gamble more than AU$4bn in suspect cash. SkyCity admitted that it operated in contravention of the AML/CTF Act.

AUSTRAC’s chief executive officer, Brendan Thomas, said: “AUSTRAC took this action out of concern that SkyCity’s conduct meant that a range of high-risk practices, behaviours and customer relationships were allowed to continue unchecked for many years.”

In a separate press release, SkyCity’s executive chairman, Julian Cook, said: “We acknowledge that, as a casino operator, we play a key role in combating money laundering and terrorism financing and safeguarding the community against these risks. While we take this responsibility seriously, we accept we have failed to live up to the standard required of us and for this, on behalf of the SkyCity and SkyCity Adelaide Boards and management teams, I apologize.

“We know we need to do better to meet the expectations of our regulators, customers and our shareholders, and this is a process that is already under way.”

See also: SkyCity appoints Jason Walbridge as chief executive officer

The company highlighted changes, including the appointment of an independent expert to conduct a review of its AML/CTF program.

Cook said: “Our enhancement activities remain ongoing and we have further important work to do in New Zealand and Australia which will take time to complete.”

The casino operator reached a joint decision with the Australian Transaction Reports and Analysis Centre (AUSTRAC). Australia.- SkyCity Adelaide and the Australian Transaction Reports and Analysis Centre (AUSTRAC) have jointly…