The financial crime watchdog has launched legal action against casino operator SkyCity Adelaide for allegedly failing to comply with federal financing laws.

December 7, 2022

Casino operator SkyCity Adelaide allegedly failed to comply with federal anti-money laundering and counter-terrorism financing laws, the nation’s financial crime watchdog says.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) on Wednesday launched legal action against SkyCity Adelaide in the Federal Court after an investigation found “serious and systemic non-compliance”.

“(The) investigation identified a range of circumstances where SkyCity failed to carry out appropriate ongoing customer due diligence,” the agency’s deputy chief executive Peter Soros said.

“SkyCity also failed to develop and maintain a compliant (anti-money laundering and counter-terrorism financing) program, leaving it at risk of criminal exploitation.”

AUSTRAC said SkyCity’s board and management team failed on multiple levels.

This included not appropriately assessing the money laundering and terrorism financing risks it faced.

The company is also accused of failing to implement systems and controls to mitigate and manage those risks.

SkyCity also allegedly did not have an appropriate program to monitor transactions and identify suspicious activity for a casino of its size.

AUSTRAC has accused the operator of failing to establish an appropriate framework for its board and senior management team to oversee its anti-money laundering and counter-terrorism financing program.

The company allegedly did not carry out appropriate checks on higher-risk customers.

Mr Soros said SkyCity’s approach to its legal obligations was ineffective and left the casino operator vulnerable to criminal exploitation.

“The requirement for regulated entities to have appropriate (anti-money laundering and counter-terrorism financing) controls and systems in place is not optional,” he said.

The case is the third civil penalty proceeding AUSTRAC has brought against casino operators.

SkyCity’s chief executive Michael Ahearne said the casino takes its anti-money laundering obligations seriously and it remained committed to improving the casino’s processes to ensure the company complied with the law.

“Providing a safe and responsible environment for our customers and communities is a priority for us,” he said.

“We will continue to work with all our regulators on the ongoing enhancements of our (anti-money laundering and counter-terrorism financing) programs.”