SkyCity Adelaide, a major casino operator in South Australia, has been ordered to pay a hefty fine of $67 million for breaches of anti-money laundering and counter-terrorism financing laws (AML/CTF). The Federal Court found that SkyCity Adelaide had failed to implement and maintain an effective AML/CTF program over a number of years. This lapse allowed high-risk customers to move millions of dollars through the casino without proper scrutiny, raising concerns about the source and ownership of these funds.
The Australian Transaction Reports and Analysis Centre (AUSTRAC), the country’s financial intelligence agency, initiated civil penalty proceedings against SkyCity Adelaide in December 2022. The lawsuit followed a thorough investigation into the casino’s compliance with AML/CTF regulations. In a statement, AUSTRAC emphasized the seriousness with which the Australian government views breaches of these laws, highlighting the potential for criminals to exploit casinos for money laundering activities.
According to court documents, SkyCity Adelaide’s shortcomings included inadequate customer due diligence procedures. These procedures are crucial for casinos to identify and assess the money laundering risks posed by their customers. The court found that SkyCity Adelaide failed to obtain and verify basic information about high-risk customers, including the source of their wealth and the legitimacy of their funds.
This laxity created significant vulnerabilities within the casin.
