New Zealand’s SkyCity Entertainment Group said Friday it has reached an agreement with Australian money laundering watchdog AUSTRAC under which the company will pay AU$67 million (US$45 million) for historical AML failures at its Australian casino, SkyCity Adelaide.
The agreement is subject to Federal Court approval, with a hearing scheduled for 7 June 2024.
According to details filed by SkyCity with the New Zealand Stock Exchange and the ASX, the company and AUSTRAC have filed a Statement of Agreed Facts and Admissions and joint submissions with the Federal Court in relation to admitted historical contraventions of the Australian AML/CTF Act and Rules from 7 December 2016 to 14 December 2022.
“We are pleased to have reached agreement with AUSTRAC, noting that the agreement remains subject to consideration and approval by the Federal Court,” said SkyCity Executive Chair, Julian Cook. “This is a significant step in resolving the proceedings.
“We acknowledge that, as a casino operator, we play a key role in combatting money laundering and terrorism financing and safeguarding the community against these risks. While we take this responsibility seriously, we accept we have failed to live up to the standard required of us and for this, on behalf of the SkyCity and SkyCity Adelaide Boards and management teams, I apologize.
“We know we need to do better to meet the expectations of our regulators, customers and our shareholders, and this is a process that is already underway.”
SkyCity added that it has invested significantly in enhancing its AML controls since AUSTRAC first raised concerns in 2021, appointing an independent expert in July 2021 to conduct a comprehensive review of SkyCity Adelaide’s AML/CTF Program and rolling out a comprehensive AML Enhancement Program for SkyCity Adelaide from November 2021, which it says took into account the findings and recommendations from the independent expert’s review, and SkyCity Adelaide’s own internal review.
The company has also made a number of governance changes to support its focus on compliance systems and processes, including completing a refresh of the SkyCity Adelaide Board, it added.
“Our enhancement activities remain ongoing and we have further important work to do in New Zealand and Australia which will take time to complete,” said Cook.
“We have commenced a comprehensive multi-year transformation program to strengthen how we manage risk across the SkyCity Group.
“We are determined to continually lift our AML/CTF practices, comply with our obligations and uphold our customer, community and regulatory expectations. We remain committed to ensuring that we provide safe and responsible experiences and environments for our people and customers, and will continue to engage cooperatively and constructively with our regulators.”
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