SkyCity off to court for ‘failures’

SkyCity Entertainment Group is facing court action from an Australian regulator for alleged failures at SkyCity Adelaide, accused of “systemic failures” in how it countered illegal activities.

The company told the NZX yesterday that the Australian Transaction Reports and Analysis Centre is taking it to court.

Austrac is the federal agency responsible for detecting, deterring and disrupting criminal abuse of the financial system to protect the community from serious and organised crime.

Peter Soros, Austrac deputy chief executive, said yesterday: “Investigations into SkyCity had found systemic failures in its approach to antimoney laundering and counterterrorism financing obligations ... [and] 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 programme.”

Since mid-2021, SkyCity is understood to have changed how it operates including more people and better systems in its anti-crime units.

Michael Ahearne, SkyCity chief executive, said yesterday: “We take our anti-money laundering obligations seriously and remain committed to enhancing our processes. We will continue to work with . . . regulators on the ongoing enhancements of our AML/CTF programmes.”

Documents on the civil proceedings will be on Austrac’s web page once they have been lodged with the court, SkyCity said.