The Financial Intelligence Unit of Australia (AUSTRAC), the regulatory body overseeing financial activities in the country, has initiated legal proceedings against Adelaide’s SkyCity gambling establishment in Federal Court. The watchdog alleges widespread shortcomings in the casino’s efforts to curb illicit financial activities, including money laundering and the funding of terrorism. The agency asserts that SkyCity fell short of its legal obligation to identify, evaluate, and mitigate dangers associated with these financial crimes.
This legal action stems from an extensive inquiry conducted by AUSTRAC, which concluded in mid-2022. This inquiry was a component of a broader AUSTRAC initiative, launched in the latter part of 2019, aimed at examining compliance measures across the entirety of Australia’s casino industry.
AUSTRAC contends that SkyCity’s program designed to combat money laundering and terrorism financing was insufficient, lacking essential risk-based mechanisms and protocols. Moreover, the agency posits that SkyCity failed to properly supervise its own program, neglecting to establish an appropriate structure for its governing body and upper management.
SkyCity also faces accusations of inadequate scrutiny of high-risk patrons, failing to perform enhanced due diligence. The company allegedly fell short in maintaining appropriate and continuous due diligence on a significant number of clients who presented an elevated risk of engaging in money laundering.
AUSTRAC’s second-in-command, Peter Soros, emphasized that SkyCity’s shortcomings were ingrained throughout the organization and transpired “over a multi-year period,” underscoring the gravity of the alleged violations.
SkyCity faces scrutiny from Australian regulators for purportedly neglecting anti-money laundering and counter-terrorism funding regulations. The Australian Transaction Reports and Analysis Centre (AUSTRAC) alleges that SkyCity’s shortcomings may have facilitated illicit actions. This development follows closely on similar allegations made against Star Pty Limited and Star Entertainment QLD Limited in the previous week, indicating a wider regulatory effort within the Australian casino sector. The possible repercussions for SkyCity are currently uncertain, as AUSTRAC remains tight-lipped on specifics and the court has yet to determine the gravity of the sanctions.
