Casino admits to violating the Anti-Money Laundering and Counter-Terrorism Financing Act
SkyCity Adelaide and AUSTRAC have jointly submitted to the Federal Court of Australia a proposed $67 million penalty for the casino’s breach of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).
AUSTRAC and SkyCity have agreed that a $67 million penalty is suitable, though the final decision rests with the court, which will review the proposed settlement in a court hearing on June 7.
AUSTRAC, or the Australian Transaction Reports and Analysis Centre, is the government agency responsible for detecting, deterring and disrupting criminal abuse of the financial system to protect the community from serious and organised crime.
SkyCity has admitted to violating the AML/CTF Act by failing to meet the requirements of its AML/CTF programs and not conducting appropriate ongoing customer due diligence for higher-risk customers and transactions.
“AUSTRAC took this action out of concern that SkyCity’s conduct meant that a range of high-risk practices, behaviours, and customer relationships were allowed to continue unchecked for many years,” said Brendan Thomas (pictured), chief executive of AUSTRAC.
Thomas added that the action underscores the need for casinos and the gaming sector to comply with AML/CTF obligations and remain vigilant against money laundering and terrorism financing risks.
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