The last few years have seen Australian casinos put under the microscope after both of the country’s casino giants have been found to have violated multiple rules and regulations. Now it seems that the focus on SkyCity Adelaide would get more concentrated than before.
Competent authorities in South Australia have revealed that they impose stricter monitoring of the only licensed casino in the state, following some allegations of a significant and systemic lack of compliance with counter-terrorism financing and anti-money laundering laws. The latest measures imposed on SkyCity Adelaide come during an ongoing action in Federal Court that was launched by the Australian Transaction Reports and Analysis Centre (AUSTRAC), and a Royal Commissioner’s review that has been put on hold.
Last Friday, Dini Soulio, a member of South Australia’s Liquor and Gambling Commission, used his powers under the Casino Act 1997 to impose further scrutiny on the operations and compliance of SkyCity Adelaide. Now, the casino would be required to hand over a “programme of work” to the commissioner, to outline how it plans to comply with its regulatory obligations, including responsible gambling and gambling-related harm minimisation, and compliance with anti-money laundering and counter-terrorism financing laws.
Apart from that, the casino is required to appoint a qualified independent entity to review that programme and make sure it is implemented in line with the state’s regulations. That independent expert will be required to report back to the Commissioner about any violations of the casino and gambling operator, and both of them are set to be making regular checks on SkyCity Adelaide’s operations.
As explained by Mr Soulio, the appointment of the Independent Monitor would not displace the role of the SkyCity Adelaide Board.
Investigators Find Multiple AML, CTF and Customer Responsibility Failures at SkyCity Adelaide
The move of South Australia’s Liquor and Gambling Commissioner is the latest one in a series of actions that both the national and state regulatory bodies have taken against casino operators in Australia over the past two years.
Two years ago, in June 2021, the Australian Transaction Reports and Analysis Centre – the body entitled to prevent organised crime and terrorism from penetrating local banks and other regulated entities to facilitate their operations – addressed the ASX to inform it about a then-ongoing investigation into three casinos’ operations over alleged “serious non-compliance” with local AML and CTF laws. One of those casinos was SkyCity Adelaide.
Initially, SkyCity Adelaide came under scrutiny for potential failures in its treatment of politically exposed and high-risk patrons in the period from July 2015 to June 2016 and from July 2018 to June 2019.
In July 2022, the liquor and gambling commissioner of South Australia asked Brian Martin AO KC, a retired Supreme Court judge, to review the operations of the casino in order to make sure local residents are well-protected. As Casino Guardian previously reported, a few months later, the AUSTRAC unveiled a decision to launch civil action against the casino in the Federal Court, alleging SkyCity Adelaide of serious and systemic lack of compliance with anti-money laundering and counter-terrorism financing laws.
Currently, the action in Federal Court is still ongoing, and the review of Mr Martin has been put on hold. The new direction from the SA Commissioner, however, is set to take effect in a few weeks, with SkyCity Adelaide given 28 days to comply with his order. If it fails to do so, it risks facing a monetary penalty worth AU$100,000.
- Author
Olivia Cole
