SkyCity Fined AUS$67 Million for AML Failures at Adelaide Casino

SkyCity has agreed to pay an AUS$67 million penalty following admissions of numerous anti-money laundering (AML) failures at its Adelaide casino. The Australian government’s financial intelligence agency, AUSTRAC, stated that both it and SkyCity Adelaide submitted joint proposals to the Federal Court of Australia.

In December 2022, AUSTRAC initiated a Federal Court action against SkyCity, which owns several casinos in Australia and New Zealand, accusing the Adelaide branch of failing to perform due diligence on 124 customers. AUSTRAC also claimed that SkyCity allowed high-risk patrons to funnel more than $4 billion in illicit funds through its Adelaide casino.

The proposed penalty of AUS$67 million is in response to violations of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. According to AUSTRAC, SkyCity has acknowledged that it "operated in contravention of the AML/CTF Act" and failed to perform adequate ongoing customer due diligence for certain high-risk customers and transactions.

AUSTRAC also noted that SkyCity Adelaide’s AML and CTF programs did not comply with the AML/CTF Act and related rules. The Federal Court of Australia is now tasked with determining the appropriateness of the proposed penalty, with a hearing scheduled for next month.

Brendan Thomas, AUSTRAC’s chief executive, emphasized the seriousness of SkyCity’s conduct, stating that it allowed a range of high-risk practices, behaviors, and customer relationships to continue unchecked for many years. Thomas highlighted that this action serves as a crucial reminder to the casino and gaming sectors to take their AML/CTF obligations seriously and remain vigilant against money laundering and terrorism financing risks.

“As the matter is before the court for determination, AUSTRAC is unable to comment further on the proceedings,” the agency added.

Recently, AUSTRAC has been increasingly active in addressing AML failures within the casino and gaming sectors. Last month, the agency announced plans for a crackdown on poker machines in New South Wales, estimating that billions in criminal funds are laundered through these machines. AUSTRAC aims to eliminate anonymity and enhance transaction traceability within gambling firms, with Thomas expressing confidence in the success of AUSTRAC’s efforts in the gambling sector.

By fLEXI tEAM