SkyCity Faces Hefty Fine for Anti-Money Laundering Violations in Australia

Australias financial regulator, AUSTRAC, along with SkyCity, have put forward a proposed resolution in the Federal Court of Australia, suggesting a substantial AUD $67 million (equivalent to roughly USD $44.6 million) penalty for the casino entity. This action follows SkyCity’s admission of significant violations of the Anti-Money Laundering and Counter-Terrorism Financing Act enacted in 2006.

A court hearing on June 7th will determine the approval of this considerable fine. SkyCity has acknowledged its shortcomings in adhering to crucial anti-money laundering and counter-terrorism financing rules, particularly in the areas of recognizing and handling high-risk patrons.

This situation is not SkyCity’s initial encounter with regulatory bodies. In the preceding year, they encountered a provisional suspension of their license due to compliance deficiencies, leading to a notable reshuffling within their executive team amidst these difficulties.

AUSTRAC has demonstrated heightened activity, recently initiating an inquiry into the prominent betting company bet365 for comparable infractions. This underscores a wider effort to curb financial misconduct and sends a clear signal that regulatory authorities are holding corporations responsible for deficiencies in their anti-money laundering and counter-terrorism financing procedures.

Within Australia, numerous gaming corporations are facing criticism due to ethical breaches and deficiencies in their anti-money laundering procedures. SkyCity recently incurred sanctions for disregarding obvious warning signs, like connections with high-risk patrons, over an extended period. This pattern of inadequate supervision has unfortunately become commonplace. Earlier this year, BlueBet received a $50,000 penalty for promotional infractions, while Star Entertainment is entangled in a controversy involving several high-ranking officials, including former CEO Matt Bekier and Chairman John O’Neill, who stepped down amidst comparable accusations.