The Financial Intelligence Unit of Australia (AUSTRAC) has initiated legal proceedings against SkyCity Adelaide, a gaming establishment located in Adelaide, Australia. AUSTRAC asserts that SkyCity engaged in grave and widespread breaches of Australia’s anti-money laundering and terrorism financing (AML/CTF) regulations.
These concerns surfaced following an extensive inquiry into the gaming sector that AUSTRAC commenced in 2019. AUSTRAC’s examination uncovered numerous areas of worry, including SkyCity’s inability to sufficiently evaluate the dangers of money laundering and terrorism financing. In particular, AUSTRAC determined that SkyCity’s AML/CTF program lacked sufficient risk-based mechanisms and safeguards. Moreover, the gaming venue did not have a suitable structure in place to guarantee its governing body and upper management were furnishing appropriate supervision of the AML/CTF program.
AUSTRAC also discovered that SkyCity neglected to adequately examine high-risk patrons, suggesting a deficiency in robust enhanced customer due diligence. The establishment also fell short in performing suitable ongoing due diligence on a spectrum of patrons who presented a heightened risk for money laundering.
“SkyCity’s inability to appropriately oversee high-risk patrons was a substantial violation,” remarked Peter Soros, AUSTRAC’s Deputy Chief Executive Officer.
SkyCity truly made a blunder with their anti-money laundering and counter-terrorism funding procedures. They essentially rolled out the red carpet for illicit actions.” That’s the message from AUSTRAC, the Australian Transaction Reports and Analysis Centre. They are pursuing legal action against SkyCity for this, mirroring their actions against The Star Pty Limited and The Star Entertainment QLD Limited in the previous week. AUSTRAC remains tight-lipped on the specifics currently, stating the court will determine the consequences. This could be a substantial financial penalty for SkyCity if the legal proceedings against comparable businesses are any indication.