SkyCity set for hefty penalty

Gaming group SkyCity Entertainment says it faces up to $73m in penalties and legal costs after admitting to serious breaches of anti-money laundering and counter-terrorism financing laws.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) launched proceedings in the Federal Court in 2022 against SkyCity Adelaide, alleging it did not have a program to monitor transactions and identify suspicious activity that was appropriate to its size and complexity.

AUSTRAC also claimed SkyCity did not have an appropriate due diligence program to carry out additional checks on higher risk customers and did not conduct appropriate checks on customers who presented higher money laundering risks.

SkyCity said it had now reached an agreement with AUSTRAC that would see it admit to serious breaches under anti-money laundering and counter-terrorism finance laws and face a civil penalty.

“SkyCity Adelaide continues to co-operate with AUSTRAC in relation to the ongoing implementation of control frameworks,” the company said in a release to the ASX.

“As previously identified, the matter will involve SkyCity Adelaide admitting serious breaches of the laws and the imposition by the court of a material civil penalty.”

SkyCity has increased provisions for potential fines and legal costs resulting from the proceedings from $45m to $73m but said total payments remained uncertain.

“The level of any penalty is a matter for the discretion of the court,” the company said.

“Any eventual civil penalty in relation to the proceedings may be significantly different than the provision.”

AUSTRAC alleged last year that casino staff knew some customers were facing money laundering and drug trafficking charges, including one customer who gambled $4.8m over 3½ years, but was not banned from the casino until 10 months after he was jailed for more than eight years for money laundering and drugs.