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Australian gaming company, SkyCity Entertainment, has provisioned $29m in anticipation of a civil penalty for a potential settlement resolving alleged violations of not complying with Anti-money laundering (AML) and Combating Finance Terrorism (CFT) laws.
SkyCity Entertainment has disclosed in a report that they may have to pay for a potential settlement amount over an alleged lack of compliance with anti-money laundering (AML) regulations. $29 million has been provisioned by SkyCity but proceeded with a warning that the Australian Transaction Reports and Analysis Centre (AUSTRAC) could impose higher penalties.
In December of last year, the AUSTRAC commenced federal prosecution against SkyCity. This is for a lack of compliance with AML regulations in South Australia. In the report, AUSTRAC stated that SkyCity had “serious and systemic non-compliance” with AML and CTF laws. Peter Soros, AUSTRAC deputy chief executive, said in the press release, “AUSTRAC’s investigation identified a range of circumstances where SkyCity failed to carry out appropriate ongoing customer due diligence, SkyCity also failed to develop and maintain a compliant [AML/CFT] program, leaving it at risk of criminal exploitation.” Other reported violations include failure to conduct risk assessment through AML and CFT measures, real-time risk management, and establishing an efficient AML system.
AUSTRAC alleged that the company doesn’t have a proper identity verification program, risk management system, or transaction monitoring software to report suspicious transactions. SkyCity must comply with AML regulations and enhance the customer due diligence process.
SkyCity is not the only gaming company that is facing hefty fines, Crown and Star Entertainment came under a similar investigation in recent times. In May, Australian court fined US $295m to the Crown because of non-compliance with the AML laws.
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