SkyCity will pay a penalty for anti-money laundering breaches. Photo / Peter Meecham
SkyCity will pay a penalty for anti-money laundering breaches. Photo / Peter Meecham
SkyCity Entertainment has agreed to pay a penalty of A$67 million ($73m) for anti-money laundering breaches at its Adelaide casino, the company said this evening.
In a statement it said its subsidiary, SkyCity Adelaide, had reached an agreement with the Australian Transaction Reports and Analysis Centre (Austrac) to settle civil penalty proceedings relating to the breaches that occurred between December 2016 and mid-December 2022.
The agreement is still subject to approval from the Federal Court, which has scheduled a penalty hearing for June 7.
Under the agreement, SkyCity Adelaide and Austrac filed a statement of agreed facts and admissions, as well as joint submissions, with the Federal Court.
“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 combating 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 Boards and management teams, I apologise.
“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 under way.”
Cook also highlighted the company’s commitment to improving its anti-money laundering and countering financing of terrorism (AML/CTF) practices and complying with its obligations.
This included efforts to improve its business, including the appointment of an independent expert to conduct a review of its AML/CTF programme, the development of a comprehensive enhancement programme, and governance changes to focus on compliance.
The company has also invested in AML/CTF resourcing and capability, strengthened its relationships with law enforcement agencies, and adopted revised AML/CTF programmes.
SkyCity is currently working towards resolving other regulatory matters and seeking early resolution.
This includes civil penalty proceedings by the Department of Internal Affairs relating to non-compliance with New Zealand’s AML/CFT Act, the department’s application to temporarily suspend SkyCity’s casino operator’s licence in New Zealand and an independent review of SkyCity Adelaide by Consumer and Business Services.
“Our enhancement activities remain ongoing and we have further important work to do in New Zealand and Australia which will take time to complete,” Cook said.
“We have commenced a comprehensive multi-year transformation programme to strengthen how we manage risk across the SkyCity Group.
“We are determined to continually lift our AML/CTF practices, comply with our obligations and uphold our customer, community and regulatory expectations.
“We remain committed to ensuring that we provide safe and responsible experiences and environments for our people and customers, and will continue to engage co-operatively and constructively with our regulators,” he said.
