AUSTRAC and SkyCity confirm the proposed $67 million penalty

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AUSTRAC and SkyCity confirm the proposed $67 million penalty

SkyCity Adelaide Pty Ltd (SkyCity) and AUSTRAC have jointly submitted a proposal to the Federal Court of Australia for a $67 million penalty due to the casino’s violations of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

A court hearing is scheduled for 7 June 2024, where Justice Lee will review the proposed settlement.

Although both AUSTRAC and SkyCity agree that a $67 million penalty is appropriate, the court will ultimately decide the final penalty.

In this agreement, SkyCity has acknowledged its violations of the AML/CTF Act, including:

  • Its AML/CTF Programs did not comply with the AML/CTF Act and AML/CTF Rules, breaching section 81.
  • It failed to conduct adequate ongoing customer due diligence for certain higher-risk customers and transactions through higher-risk channels, breaching section 36.

AUSTRAC’s Chief Executive Officer, Brendan Thomas, stated:

AUSTRAC took this action because SkyCity’s conduct allowed a range of high-risk practices, behaviors, and customer relationships to go unchecked for many years.

Mr. Thomas emphasized that this action underscores the importance for casinos and the gaming sector to adhere to their AML/CTF obligations and remain vigilant against money laundering and terrorism financing risks.

As the matter is currently before the court, AUSTRAC cannot provide further comments on the proceedings.