SkyCity Adelaide has agreed to pay a penalty of AUD$67.0 million (approx. €41.2 million) for anti-money laundering failings.
The casino operator has agreed the penalty with Australia’s financial crime authority AUSTRAC, and a hearing has been scheduled for 7 June at the Federal Court of Australia to consider the settlement.
It will ultimately be up to the court to decide the amount of the penalty in relation to SkyCity’s breach of AML regulations in the period from December 2016 to December 2022.
“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 AUSTRAC chief executive Brendan Thomas.
He added that the action should serve as an important reminder to casinos and the gaming sector to take their AML/CTF obligations seriously and be vigilant to money laundering and terrorism financing risks.
SkyCity executive chair Julian Cook commented: “We are pleased to have reached agreement with AUSTRAC, noting that the agreement remains subject to consideration and approval by the Federal Court. This is a significant step in resolving the proceedings.
“We acknowledge that, as a casino operator, we play a key role in combatting money laundering and terrorism financing and safeguarding the community against these risks. While we take this responsibility seriously, we accept we have failed to live up to the standard required of us and for this, on behalf of the SkyCity and SkyCity Adelaide Board and management teams, I apologise.
Cook added: “We know we need to do better to meet the expectations of our regulators, customers and our shareholders, and this is a process that is already underway.”
Shares in SkyCity Entertainment Group Ltd. (NZE:SKC) gained 4.85 per cent to close at NZ$1.73 per share Monday.