The operator of SkyCity Adelaide Casino has set aside a modest AU$45m ($29.20m) to cover a potential civil penalty stemming from a case in the Federal Court that alleges systemic non-compliance with Australia’s anti-money-laundering (AML) and counterterrorism financing (CTF) laws.
The sum the New Zealand-based SkyCity Entertainment Group announced on Monday it had allocated is ten times less than the AU$450m ($292m) the Federal Court ordered Crown Melbourne and Crown Perth to pay for failures along the same AML and CTF lines in May.
criminal elements laundered almost AU$4bn ($2.6bn) through the Adelaide casino
The Australian Transaction Reports and Analysis Centre (AUSTRAC) initiated the court action against SkyCity Adelaide in December. While the court case is still in its infancy and the potential penalty unknown, the key AUSTRAC allegation is that criminal elements laundered almost AU$4bn ($2.6bn) through the Adelaide casino over six years, which includes AU$85m ($55.1m) allegedly churned through it by a customer belonging to a family of convicted heroin dealers.
According to the Australian Broadcasting Corporation, SkyCity stated setting aside the $45m would not impact the 2023 financial year’s “normalise earnings.” The operator also announced Monday that its operating license had been “impaired” by an extra AU$45.6m ($29.61m).
The ABC reported that SkyCity is, meanwhile, cooperating with AUSTRAC and working on boosting its AML control frameworks.