SkyCity Adelaide Faces a Massive AU$67 Million Penalty for Violating Anti-Money Laundering Regulations
In a landmark ruling, the Federal Court of Australia has fined SkyCity Adelaide a record-breaking AU$67 million for breaching anti-money laundering (AML) and counter-terrorism financing (CTF) laws. The penalty, which is the second major civil penalty against an Australian casino for AML/CTF Act violations, comes after an extensive investigation by the Australian Transaction Reports and Analysis Centre (AUSTRAC).
The investigation revealed a series of serious AML/CTF breaches within SkyCity Adelaide, with multiple failures in the casino's AML/CTF programs. The court found that SkyCity's non-compliance facilitated the movement of millions of dollars through the casino by high-risk individuals.
Among the charges were a failure to assess real risks of money laundering and terrorism financing, as well as inadequate risk-based controls, poor oversight and monitoring, missed or delayed reporting, gaps in customer due diligence, and a weak internal compliance culture and frameworks.
The heightened scrutiny on AML/CTF non-compliance within the gambling industry emphasizes the need for casinos and similar entities to bolster their systems and controls against financial crimes. Failure to comply with AML/CTF laws can undermine the integrity of the financial system and fuel criminal enterprises, impacting the broader community.
SkyCity Entertainment Group had previously earmarked AU$45 million for potential penalties, but the actual fine and related costs amount to an additional AU$25 million. The ongoing regulatory and legal challenges facing SkyCity highlight the complexity of operating within the gambling industry.
The court also ordered SkyCity to bear costs amounting to AU$3 million in addition to the fine. The Federal Court's decision against SkyCity Adelaide underscores the critical importance of robust AML/CTF frameworks within the gambling industry.
The penalty against Crown Melbourne and Crown Perth for similar AML/CTF violations totals AU$450 million over two years. The fines serve as a stark reminder for casinos to prioritize AML/CTF compliance and implement rigorous risk management and internal controls to prevent financial crimes.
- The ruling against SkyCity Adelaide, with a AU$67 million fine for breaching AML/CTF laws, underscores the importance for casinos and similar entities to strengthen their systems and controls against money laundering and terrorist financing.
- Given the recent fines totalling AU$450 million against Crown Melbourne and Crown Perth for similar AML/CTF violations, it is imperative for casinos to prioritize compliance with these regulations and implement robust risk management and internal controls to prevent financial crimes.
