SkyCity Adelaide to pay $44 mln fine to resolve money laundering probe (updated)

Skycity Entertainment

17/05/2024 07:05

(Adds background, details from paragraph 2 onwards)
       May 17 (Reuters) - The operator of SkyCity
Entertainment's  SKC.NZ  Adelaide casino will pay a A$67 million
($44.67 million) penalty to resolve anti-money laundering
proceedings brought against it by the Australian financial
crimes regulator, the casino operator said on Friday.
    The proceedings were brought by the Australian Transaction
Reports and Analysis Centre (AUSTRAC) in December 2022 after
investigations into SkyCity found systemic failures in its
approach to anti-money laundering and counter-terrorism
financing laws.
    In reaching the agreement, SkyCity admitted that it did not
carry out appropriate due diligence with respect to certain
higher risk customers and customers transacting through higher
risk channels, according to AUSTRAC.
    "AUSTRAC took this action out of concern that SkyCity’s
conduct meant that a range of high-risk practices, behaviors and
customer relationships were allowed to continue unchecked for
many years," AUSTRAC’s Chief Executive Officer, Brendan Thomas
said.
    The company said that SkyCity Adelaide continued to focus on
improvement of its business since AUSTRAC first raised concerns
in mid-2021, and has made a number of governance changes,
including completing a refresh of the its board. 
    "We have commenced a comprehensive multi-year transformation
programme to strengthen how we manage risk across the SkyCity
Group," SkyCity Executive Chair Julian Cook said in a statement.
    The settlement of the proceeding is subject to Federal court
approval and a penalty hearing is scheduled on June 7, SkyCity
said.
        
  
        
  
    
($1 = 1.4999 Australian dollars)

 (Reporting by John Biju in Bengaluru; Editing by Janane
Venkatraman
)
 ((John.Biju@thomsonreuters.com;))