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SkyCity Adelaide To Pay $67 Million Penalty For Anti-Money Laundering Failures
https://www.whatjobs.com/news/world-news/skycity-adelaide-to-pay-67-million-penalty-for-anti-money-laundering-failures
SkyCity Adelaide casino has agreed to pay $67 million for breaches of anti-money laundering and counter-terrorism financing (AML/CTF) laws.
This settlement follows Australian Transaction Reports and Analysis Centre’s (AUSTRAC) investigation that began nearly three years ago.
It uncovered "systemic failures" in the casino's compliance framework.
The $67 million penalty represents about three-quarters of $90 million SkyCity Adelaide had allocedin its FY23 results.
The court hearing to approve the settlement is scheduled for June 7.
"We recognize that, as a casino operator, we play a key role in combating money laundering and terrorism financing"
AUSTRAC's investigation revealed major deficiencies in SkyCity Adelaide's risk management, transaction monitoring, and customer due diligence processes.
The watchdog launched civil penalty proceedings against the casino in December 2022.
This was shortly after initiating similar actions against The Star Entertainment Group.
The group has faced $200 million in fines from New South Wales and Queensland governments for comparable breaches.
Crown Resorts also settled with AUSTRAC for $450 million in May 2022 for similar violations In Melbourne and Perth.
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AUSTRAC CEO 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."
He reiterated the importance of the sector adhering to AML/CTF obligations to prevent money laundering and terrorism financing.
Julian Cook, executive chair of SkyCity Entertainment Group, the New Zealand-based parent company of SkyCity Adelaide, acknowledged the casino's shortcomings.
Cook said: "We recognize that, as a casino operator, we play a key role in combating money laundering and terrorism financing.
"While we take this responsibility seriously, we accept that we have failed to meet the required standards, and for this, I apologize on behalf of the SkyCity and SkyCity Adelaide boards and management teams."
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