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SkyCity sets aside $48.4M as penalty for AML failures

New Zealand Casino operator SkyCity has come to an agreement with the financial crimes watchdog and is preparing to pay a penalty of NZ$75 million ($46 million) plus costs.

The penalty is for alleged violations of anti-money laundering and counter-terrorism financing laws in Australia.

The Federal Court of the country initiated civil penalty proceedings against SkyCity’s Adelaide casino in December of 2022, leading the company to set aside NZ$79m ($48.4m) to cover the penalty and legal costs, a significant increase to the initially allocated NZ$49 million ($30 million).

SkyCity has reached an agreement with the Australian Transaction Reports and Analysis Center (AUSTRAC) regarding the admitted breaches and penalty amount, pending finalization of agreed facts and admissions. The court will determine the appropriateness of the agreed penalty, with a hearing scheduled for June of this year.

Despite providing an indication to the court, SkyCity highlighted the uncertain final amount of the civil penalty and associated legal costs.

Frank Schuengel
Frank Schuengel
Frank Schuengel is an online gambling industry veteran with over twenty years of experience in Europe and Asia. Equally at home in the Isle of Man and the Philippines, he started his career as a sports trader before setting up and running whole operations, and more recently focusing on the regulatory and licensing side of things in the worlds of fiat and crypto eGaming. When he is not writing about gambling topics, he can be found cycling around Manila and advocating sustainable transport solutions for a Philippines based mobility magazine.

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