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AUSTRAC has revealed the beginning of civil penalty proceedings in the Federal Court against SkyCity Adelaide for being non-compliant with AML/CTF regulations.
The Adelaide casino has been under investigation since last year as part of a compliance campaign started by the Australian Transaction Reports and Analysis Center (AUSTRAC).
Peter Soros, AUSTRAC Deputy Chief Executive, said that the watchdog discovered systemic failures in Adelaide casino’s approach to its AML/CTF obligations.
“Austrac’s investigation identified a range of circumstances where SkyCity failed to carry out appropriate ongoing customer due diligence,” he said. “SkyCity also failed to develop and maintain a compliant AML/CTF program, leaving it at risk of criminal exploitation.”
AUSTRAC has announced that it would start civil penalty proceedings in the Federal Court against SkyCity Adelaide
Australia’s financial crime watchdog is taking the casino company to court for failing to comply with anti-money laundering laws, putting it at risk of criminal exploitation. https://t.co/5j47WQHmRU
— Stuff Business (@NZStuffBusiness) December 7, 2022
According to Jarden Senior Analyst Adrian Allbon, SkyCity may be liable for penalties of A$50 million as a consequence of state investigations by AUSTRAC and South Australia.
Soros stated that AUSTRAC is still working with SkyCity to ensure it abides by its legal commitments.
In a comment to the NZX, SkyCity stated that its Adelaide casino gave “the utmost importance” to adhering to all of its legal requirements, particularly those pertaining to AML compliance. The business stated that before reacting, it would carefully analyze the accusations.
SkyCity Chairman Julian Cook informed the shareholders that a large construction initiative was underway at the Adelaide casino to improve its anti-money laundering procedures. Severe financial and reputational damage on SkyCity, he added, may result from Austrac taking criminal prosecution against the business.