The Federal Court docket of Australia has ordered SkyCity Leisure Group to pay AU$67 million ($44.2 million) of civil penalty following a cash laundering case.
The ruling was in relation to a case introduced on by the Australian Transaction Experiences and Evaluation Centre (AUSTRAC). SkyCity and AUSTRAC agreed on the penalty quantity final month. This decision, now accredited by the courtroom, addresses historic anti-money laundering (AML) and counter-terrorism financing (CTF) deficiencies at SkyCity’s Adelaide on line casino.
The courtroom additionally mandated SkyCity to cowl AUSTRAC’s authorized prices of $three million.
Allegations in courtroom paperwork revealed that the on line casino had clientele with connections to organized crime, mortgage sharking, human trafficking, and intercourse slavery. An AUSTRAC spokesperson famous that SkyCity didn’t conduct enough ongoing buyer due diligence, permitting high-risk clients to channel thousands and thousands of {dollars} via the on line casino over a number of years.
“SkyCity admitted that its contraventions made it weak to legal exploitation, and uncovered the Australian group and monetary system to cash laundering and terrorism financing threat,” the spokesperson stated.
“It (SkyCity) failed to hold out required checks on 121 clients, together with the place SkyCity knew clients have been the topic of legislation enforcement curiosity, or the place there have been indications that some posed a better threat of cash laundering.”
Peter Soros, AUSTRAC’s performing chief govt, emphasised the significance of compliance with anti-money laundering legal guidelines, stating that casinos, like all companies, should fulfill their AML obligations.
“Right this moment’s consequence reveals Austrac is ready to take motion when companies, together with casinos, fail to adjust to the laws. Companies who ignore their obligations are affecting the Australian group by leaving the door open to legal exercise,” Soros stated.
In Could, each SkyCity Adelaide and AUSTRAC filed a joint submission proposing the AU$67 million penalty to resolve the on line casino’s misconduct. In the meantime, South Australia’s Client and Enterprise Providers division had beforehand appointed retired Supreme Court docket choose Brian Martin KC in 2022 to research SkyCity’s suitability to function the on line casino. This investigation was paused whereas AUSTRAC pursued the matter in Federal Court docket.
Since AUSTRAC’s allegations, SkyCity has initiated measures to deal with the recognized points. The corporate appointed an unbiased skilled in July 2021 to evaluate its AML/CTF packages on the Adelaide on line casino and different operations. This evaluate has prompted vital modifications on the venue.
The on line casino has additionally developed an AML enhancement program for the Adelaide on line casino, incorporating enhancements based mostly on the preliminary case findings. The on line casino has additionally made governance modifications, expanded its monetary crime, authorized, and compliance groups, and dedicated to elevated funding in AML and CTF assets. Moreover, SkyCity has strengthened its cooperation with legislation enforcement businesses.
In a associated authorized subject, SkyCity introduced that the Excessive Court docket has agreed to listen to its attraction relating to the calculation of state authorities taxes on loyalty reward factors. The on line casino disputes whether or not these factors needs to be thought-about taxable income when transformed for playing. An earlier ruling by the South Australian Supreme Court docket had gone towards SkyCity, and if the attraction is unsuccessful, the on line casino could owe greater than AU$22 million ($14.5 million).
