The financial crimes regulator of Australia is set to commence civil penalty proceedings against the Adelaide-based casino of SkyCity.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has alleged that the Adelaide casino of the gambling giant has not complied with the anti-money laundering (AML) and counter-terrorism financing (CTF) laws of the country. The civil proceedings faced by SkyCity Entertainment Group come after an investigation into the casino operator that was initiated by the financial watchdog in 2021 as part of its industry-wide compliance campaign.
Peter Soros, the deputy chief executive officer of AUSTRAC, shared that the probe into SkyCity Adelaide had found systemic failures in the casino’s approach to the AML and CTF laws of the country. He explained that the investigation held by the financial crimes regulatory body had identified a range of circumstances in which the Australian gambling giant failed to carry out suitable customer due diligence.
Apart from that, Mr Soros shared that SkyCity Adelaide also failed to develop and maintain a compliant anti-money laundering and counter-terrorism financing programme, which left the operator at risk of criminal exploitation. He further explained that the Australian Transaction Reports and Analysis Centre was still collaborating with the casino to make sure it complied with the aforementioned pieces of legislation.
Investigation into SkyCity Adelaide Casino Follows AUSTRAC’s Industry-Wide Compliance Campaign
The latest civil penalty proceeding against the Adelaide casino of SkyCity Entertainment is set to be the third proceeding of this kind that has been brought by the AUSTRAC against businesses operating in the casino sector.
SkyCity Entertainment Group issued a statement to the New Zealand stock exchange, explaining that its Adelaide casino property recognised compliance with its regulatory obligations as a matter of paramount importance. The gambling company’s statement also said that SkyCity would take the financial regulator’s claims into careful consideration once they were received. As far as the ongoing implementation of various enhancements to its control frameworks is concerned, the gambling company also noted that it would continue to cooperate with the AUSTRAC.
As mentioned above, the investigation into the Adelaide casino of the brand came as a result of the industry-wide compliance campaign held by the Australian Transaction Reports and Analysis Centre that started in September 2019, which has also resulted in civil penalty proceedings against the Star Entertainment Group. The AUSTRAC now alleges that SkyCity failed to make an appropriate assessment of money laundering and terrorism financing risks, and the likelihood and impact of those risks. The regulator also accuses the casino operator of failing to identify and respond to changes in risk over time.
Reportedly, the Australian gambling giant is facing a separate independent probe into SkyCity Adelaide. The investigation was initiated by Dini Soulio, a member of the local Liquor and Gambling Commission, and is being currently undertaken by the Honourable Brian Martin AO KC. Mr Soulio explained that he would be taking into consideration the detail of the AUSTRAC proceedings in order to determine what would the following steps against SkyCity Entertainment be. He further shared that he would work in collaboration with the financial watchdog, SkyCity Entertainment’s board, as well as Mr Martin AO KC.
- Author
Olivia Cole
