AUSTRAC opens civil penalty proceedings against SkyCity Adelaide

AUSTRAC, the Australian financial regulator, has launched another round of civil penalty proceedings against a gaming operator in the country. After targeting The Star Pty Limited and The Star Entertainment QLD Limited at the end of November, the watchdog opened a similar procedure with the Federal Court against SkyCity Adelaide Pty Ltd, or SkyCity.

Just like in the previous case, the watchdog alleges a lack of compliance with the country’s AML and CTF mandates, bringing the casino into the crosshair of regulatory scrutiny. The civil proceedings come after an enforcement investigation in the company in June 2021, the regulator detailed on its official page. Commenting on this case, AUSTRAC presents the following update:

"AUSTRAC’s investigation 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 program, leaving it at risk of criminal exploitation."

The case was also commented on by AUSTRAC Deputy CEO Peter Soros who enumerated the alleged breaches that the property committed. The way SkyCity ran its AML and CTF controls had left it vulnerable to criminal exploitation. Soros added that companies must all adhere to the regulatory mandates and that AML and CTF controls and systems were not optional.

AUSTRAC though is currently in communication with SkyCity and working together to ensure that the company meets its AML/CTF obligations in the future. Soros reminded that the present case is in fact a third civil proceeding that has been brought against a casino company in Australia, which should serve as a clear warning to any entity that has not been targeted yet that they need to make rapid amendments should they suspect deficiencies in the way they control AML/CTF.

AUSTRAC said that the company failed to establish "an appropriate network" for SkyCity’s higher-ups and members of the board to oversee AML and CTF measures. There was a lack of enhanced due diligence customer checks, and customers who presented higher money laundering risks were not checked extensively, among other things, the official statement by the watchdog enumerated.

AUSTRAC said that it would not be providing any additional information for the time being as it awaits the court to act next. The watchdog confirmed that all documents submitted to the court now and in the future will be available on its dedicated enforcement actions taken page.

Image credit: Unsplash.com