Adelaide Casino to Cover Expenses in Addition to $67 Million Fine
An Adelaide casino has agreed to pay $67 million (US$44.6 million) in penalties to a watchdog that pursued legal action against them.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) filed a civil action against SkyCity Adelaide in December 2022, accusing the casino of violating money laundering and counter-terrorism financing laws.
In May, both the regulator and the casino reached a settlement for the $67 million penalty, taking into consideration the casino’s cooperation and acknowledgment of their unlawful activities between 2016 and 2022.
The casino was found to have failed to fulfill its obligations and neglected to conduct proper ongoing customer analysis.
AUSTRAC revealed that SkyCity allowed high-risk customers to transfer millions of dollars through the casino in ways that concealed the source of the funds.
“SkyCity provided services to high-risk customers through risky channels without appropriate risk-based controls,” stated the regulator on June 7.
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SkyCity has agreed to cover the regulator’s costs within 14 days.
Federal Court Justice Michael Lee approved the agreed $3 million (US$2 million) in costs to be paid by the casino to the regulator on top of the $67 million penalty, deeming the conduct of both parties to be thorough and the costs appropriate.
Justice Lee criticized AUSTRAC for not presenting evidence of the financial gains the casino made from the unlawful activities.
“The regulator failed to provide such evidence in the case, which is crucial to determining the extent of the financial benefits derived from the misconduct,” remarked the judge.
This is the second time AUSTRAC has successfully imposed civil penalties on casinos, following Crown’s $450 million (US$300 million) penalty over two years for violations in its Melbourne and Perth operations.
SkyCity publicly announced the resolution of the proceedings on the morning of June 7.
