The Federal Court of Australia has ordered SkyCity Adelaide Pty Ltd (SkyCity) to pay a $67 million penalty for breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). The Court also ordered SkyCity to pay AUSTRAC’s costs fixed at $3 million.

CEO of AUSTRAC v SkyCity Adelaide Pty Ltd [2024] FCA 664

The Sky City casino attracts an average of 5,500 visitors per day and provides gambling services from up to 200 tables and up to 1,500 gaming machines in multiple locations within the venue. The casino generates international, interstate and local business.

The court found that SkyCity’s AML/CTF Programs failed to meet the requirements of the AML/CTF Act, and that it did not carry out appropriate ongoing customer due diligence.

SkyCity admitted that its contraventions made it vulnerable to criminal exploitation, and exposed the Australian community and financial system to money laundering and terrorism financing risk.

SkyCity also provided services through high-risk channels and to high-risk customers without appropriate risk-based controls. It failed to carry out required checks on 121 customers, including where SkyCity knew customers were the subject of law enforcement interest, or where there were indications that some posed a higher risk of money laundering.

The casino also failed to establish an appropriate framework to ensure adequate board and senior management oversight of its AML/CTF Programs.

SkyCity admitted that it operated in contravention of the AML/CTF Act, including that:

• its AML/CTF Programs did not meet the requirements of the AML/CTF Act and AML/CTF Rules, in contravention of section 81.
• it did not carry out appropriate ongoing customer due diligence with respect to certain higher risk customers and customers transacting through higher risk channels, in contravention of section 36.

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Author: David Jacobson
Principal, Bright Corporate Law
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The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.