Australias fiscal transgression supervisory body is pursuing legal action against SkyCity Adelaide, asserting that the gaming establishment operator engaged in “grave and widespread” violations of anti-money cleansing and terrorism financing regulations.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) initiated an inquiry in 2019 as a component of a wider examination into the casino sector. AUSTRAC contends that SkyCity neglected to adequately evaluate the perils of money laundering and terrorism financing and did not have sufficient safeguards in place to mitigate these hazards. Moreover, AUSTRAC asserts that SkyCity lacked a suitable structure for board and executive oversight of its anti-money laundering and counter-terrorism financing program.
The regulatory authority further alleges that SkyCity failed to conduct suitable due diligence on elevated-risk patrons, including those who might have posed a heightened risk of money laundering. In essence, AUSTRAC is accusing SkyCity of insufficient knowledge regarding its clientele and their origins of funds.
“AUSTRAC’s examination revealed a variety of situations where SkyCity fell short of carrying out appropriate continuous customer due diligence,” stated AUSTRAC Deputy Chief Executive Peter Soros.
SkyCity faces scrutiny from Australian regulators for inadequate measures against money laundering and terrorism financing threats. The firm’s deficient supervision, or absence of it, may have inadvertently allowed criminals to leverage its infrastructure. While the Australian Transaction Reports and Analysis Centre (AUSTRAC) remains tight-lipped on the details at present, the judiciary will ultimately determine if SkyCity will incur a substantial penalty and its magnitude. This move against SkyCity comes on the heels of comparable legal actions AUSTRAC launched against Star Pty Limited and Star Entertainment QLD Limited recently, suggesting a wider regulatory offensive within the sector.
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