- The allegations against SkyCity are extensive
- Includes not carrying extra checks on higher-risk customers
- Comes as Crown has been under intense scrutiny over the past two years
AUSTRAC has announced today it will commence civil penalty proceedings in the Federal Court against SkyCity Adelaide Pty Ltd for alleged systemic non-compliance with anti-money laundering and counter-terrorism financing (AML/CTF).
These proceedings come after an enforcement investigation into SkyCity, which they were notified about back in June 2021. His was a result of a proactive, industry-wide compliance campaign AUSTRAC started in September 2019. It also comes over many inquiries into Crown and whether or not it is fit to hold a casino licence.
AUSTRAC Deputy CEO Peter Soros noted the allegations are extensive.
“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/CTF program, leaving it at risk of criminal exploitation,” he said.
The allegations include SkyCity failing to assess the money laundering and terrorism financing risks it faced, including the likelihood and impact of those risks.
It also failed to include appropriate risk-based systems and controls in its AML/CTF program, failed to establish an appropriate framework, did not have a transaction monitoring program, and did not have appropriate enhanced customer due diligence to carry extra checks on higher-risk customers.
Mr Soros added that the ineffective approach SkyCity had in regards to its AML/CTF program left it extremely vulnerable to exploitation.
“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,” he said.
“AUSTRAC continues to work with SkyCity to ensure it complies with its obligations under the AML/CTF Act and to ensure it continues to meet its obligations in the future.
“This is the third civil penalty proceeding AUSTRAC has brought against businesses operating in the casino sector, It should serve as a warning to casinos and all other businesses regulated by AUSTRAC to take their AML/CTF obligations seriously and comply with the AML/CTF Act and AML/CTF Rules.”
Peter Soros, AUSTRAC Deputy CEO
Whether there is a civil penalty order made, or the amount this would be, are before the court.
In a statement, AUSTRAC said it will not provide further comment on the action, given it is before the court.
