AUSTRAC Cracks Down on SkyCity as Australia's Casino Sector Faces Difficulties
Down under, Australia's Transaction Reports and Analysis Centre (AUSTRAC) has hinted at their scrutiny on SkyCity Entertainment Group's casino activities a little over a month ago. It seems AUSTRAC isn't happy with what they discovered, as they now plan to sue the casino operator for anti-money laundering (AML) shortcomings.
With just one property in Australia, the SkyCity Adelaide located in South Australia, AUSTRAC decided to look into SkyCity's practices last year. This major investigation went as far as including other notable operators like Star Entertainment and Crown Resorts.
Media outlet ABC News broke the news on Wednesday, revealing that AUSTRAC is now planning on bringing charges against SkyCity for "serious and systemic non-compliance" with AML regulations and due diligence practices. The institution plans to fight it out in federal court, like they have been doing with Star and Crown.
Trouble Continues to Hound Australia's Gambling Market
AUSTRAC's investigations, shared with the court, unearthed a permissive play at SkyCity Adelaide for one customer amidst AUD85 million (US$57 million) worth of cash. Although not a crime on its own, this individual hadthree relatives who ended up in prison for drug-related acts.
Additionally, 124 customers didn't go through necessary due diligence procedures at the Adelaide casino. AUSTRAC provided descriptions of 59 such clients with criminal records, including an alarming case called "Customer 29."
Although his declared occupation was "meat-packer," this customer managed to rack up AUD56 million (US$37.56 million) at the casino over time. Talent.com notes the average salary for an Aussie meat-packer as AUD28.50 (US$19) per hour.
The court papers also implicate another gamer, "Customer 30," in a family suspected of dealing drugs. This gambler transfered AUD34 million (US$22.7 million) to the casino within a few years.
The documents further indicate that SkyCity reps were aware of some customers with shady backgrounds. In some cases, reps understood that illegal money transactions and other crimes were part of their history.
The Court Weighs Decisions
While AUSTRAC presented their evidence in court, they still can't tell what charges or penalties might be inflicted. Until SkyCity reviews the claims and submits their rebuttal, the decision remains unknown.
Notwithstanding the final determination, it doesn't bode well for Australia's gambling industry, already battling a range of issues. Star and Crown's financial and civil penalties are just the tip of the iceberg as SkyCity's own failings pile up, adding to the sector's woes.
The states with the gaming market in Australia work with minimal federal involvement, which means each jurisdiction sets gambling rules and provides oversight. But with recent issues, more far-reaching changes are likely to be discussed.
Read also:
- Leverkusen claims victory in the cup, securing a double triumph.
- Alonso achieves a double victory after consuming a German brew.
- Does the SVolt factory in Saarland face stability issues?
- Furor surrounding Sylt scandal footage