AUSTRAC, Australia’s financial watchdog agency, is bringing civil charges against SkyCity Adelaide in the country’s Federal Court for what it is calling “serious and systemic” violations of existing anti-money laundering and counter-terrorism funding (AML/ CTF) regulations.
In a statement released December 7, the agency indicated that it is now the court’s responsibility to determine whether or not “a civil penalty order is made and any amount.”
Per AUSTRAC, SkyCity failed in just about every aspect of AML/CTF compliance—the casino did not properly identify and assess risks, implement the proper systems and procedures or establish a framework of managerial oversight.
A lack of proper “transaction monitoring” procedures and “appropriate enhanced customer due diligence programs” were also included in AUSTRAC’s allegations. That said, court filings have not yet been made public, so the exact charges being levied against the casino are unknown.
Peter Soros, deputy CEO of AUSTRAC, was quoted in the release as saying, “The requirement for regulated entities to have appropriate AML/CTF controls and systems in place is not optional and should be taken seriously by all businesses regulated by AUSTRAC.”
In response to the proceedings, SkyCity released a statement saying it “places utmost importance on compliance with its regulatory obligations,” but noted that it must “give the allegations in the AUSTRAC claim, once received, careful consideration before responding.”
In the weeks leading up to the agency’s recent announcement, some analysts had speculated that the casino could face fines in the neighborhood of $32 million for such violations, after AUSTRAC first sounded the alarm about potential failings last year.
This latest development could set the stage for a rough 2023 for SkyCity, as regulators in the state of South Australia are also conducting a separate inquiry to determine whether or not the casino is suitable for licensure in Adelaide.
