Australia's financial crimes watchdog will commence civil penalty proceedings against Adelaide's casino in the Federal Court today.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) alleges systemic non-compliance by SkyCity Adelaide with Australia's anti-money-laundering and counter-terrorism financing laws.
The civil proceedings follows the watchdog's investigation into the casino that began last year, as part of AUSTRAC's industry-wide compliance campaign.
AUSTRAC's deputy chief executive Peter Soros said investigations into SkyCity Adelaide had found systemic failures in its approach to anti-money-laundering and counter-terrorism financing (AML/CTF) laws.
"AUSTRAC's investigation identified a range of circumstances where SkyCity failed to carry out appropriate ongoing customer due diligence," he said.
"SkyCity also failed to develop and maintain a compliant AML/CTF program, leaving it at risk of criminal exploitation."
The latest civil penalty proceeding will be the third that AUSTRAC has brought against businesses operating in the casino sector.
Mr Soros said AUSTRAC was continuing to work with the casino to ensure its compliance with the laws.
In a statement to the NZ stock exchange, SkyCity Entertainment Group said SkyCity Adelaide placed the "utmost importance on compliance with its regulatory obligations".
The statement said SkyCity would give the claim "careful consideration" once it was received, and would continue to cooperate with AUSTRAC with the "ongoing implementation of enhancements" to its control frameworks surrounding the laws.
A separate independent investigation into SkyCity Adelaide, initiated by the Liquor and Gambling Commissioner Dini Soulio, is currently being undertaken by the Honourable Brian Martin AO KC.
"I will now be considering the detail of the AUSTRAC proceedings to determine the next steps, and will be engaging with AUSTRAC, the board of SkyCity and Mr Martin KC," Mr Soulio said.
"As these matters are now before the Federal Court, it would be inappropriate to comment further at this time."
