Operator News
SkyCity agrees to $67m fine over AML breaches in Adelaide
By Phil - 20 May 2024
SkyCity Entertainment has agreed to pay a penalty of $67m to the Australian Transaction Reports and Analysis Centre (AUSTRAC) over anti-money laundering and counter-terrorism financing breaches at its Adelaide casino.
Julian Cook, Executive Chair at Sky Entertainment, said the operator ‘failed to live up to the standards required.’
The two entities have filed joint submissions with the Federal Court of Australia, proposing a $67mpenalty over the casino’s contravention of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).
A court hearing has been set down for 7 June 2024, at which Justice Lee will consider the parties’ proposed settlement. While AUSTRAC and SkyCity agree that a $67m penalty is appropriate in all the circumstances, it is a matter for the court to determine the appropriate penalty.
In reaching this agreement, SkyCity has admitted that it operated in contravention of the AML/CTF Act, including that its AML/CTF Programs did not meet the requirements of the AML/CTF Act and AML/CTF Rules, in contravention of section 81. It also did not carry out appropriate ongoing customer due diligence with respect to certain higher risk customers and customers transacting through higher risk channels, in contravention of section 36.
“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,” AUSTRAC’s Chief Executive Officer, Brendan Thomas said.
Mr Thomas said the action serves as an important reminder to casinos and the gaming sector to take their AML/CTF obligations seriously and be vigilant to money laundering and terrorism financing risks.
Mr. Cook added: “We acknowledge that, as a casino operator, we play a key role in combatting money laundering and terrorism financing and safeguarding the community against these risks,” he says.
“While we take this responsibility seriously, we accept that 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 apologise. 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 underway.”
