The Australian Transaction Reports and Analysis Centre (Austrac), a government-run financial intelligence agency, has taken SkyCity Adelaide to federal court for not following anti-money laundering rules.
 AUSTRAC noted that the land-based casino operator had a history of "serious and systemic non-compliance" with the country's laws against money laundering (AML) and financing terrorism (CTF).

 After an inquiry into the New Zealand-based business, which SkyCity was told about in June 2021, the civil penalty proceedings start.  The investigation was the result of a compliance campaign that started in September 2019 and affected the whole industry.

 AUSTRAC started a crackdown on businesses that didn't follow AML/CTF rules across the board in September 2019.
 Peter Soros, the agency's deputy CEO, claimed that the business has observed a lot of problems with how it handled its AML/CTF duties.

 He stated, "Austrac's investigation found a number of situations in which SkyCity did not do the right ongoing customer due diligence."  "SkyCity also didn't make or keep up a legal AML/CTF program, which put it at risk of being used for crime."

 SkyCity claimed it knew about the case but wouldn't say anything more than what the prosecution had already revealed.

 "Because the case will be in court, the company shouldn't say anything more about the claims at this time."

 AML and CTF problems
 Austrac says that SkyCity did not properly look at the dangers of money laundering and terrorism funding that it faced.  The operator also didn't put risk-based processes and controls into its AML and CTF programs or set up a sufficient structure for board and senior management to keep an eye on these projects.

 SkyCity also didn't have a "transaction monitoring program" to keep an eye on transactions and find suspicious activity that was based on risk or fit the size, nature, and complexity of SkyCity.

 Austrac also found that SkyCity didn't have a "proper enhanced customer due diligence program" to do more checks on consumers who were more likely to be a danger.

 Soros argued that the problems on the list made the business open to criminal abuse.

 He said, "All businesses regulated by Austrac must have the right AML/CTF controls and systems in place. This is not an option."

 "Austrac is still working with SkyCity to make sure it follows the rules of the AML/CTF Act and will keep doing so in the future."

 "This is the third civil penalty case Austrac has brought against businesses in the casino industry. It should serve as a warning to casinos and all other businesses that Austrac regulates to take their AML/CTF obligations seriously and follow the AML/CTF Act and AML/CTF Rules."

 A bigger crackdown by Austrac
 The financial intelligence agency has taken action against SkyCity, the most recent Australian-facing gambling business to be in trouble.

 In March, Austrac took Crown Resorts, a casino operator, to court for not following anti-money laundering rules.  In November, the agency also took Star Entertainment Group to federal court.  Neither case has been decided yet.

 After both land-based businesses were linked to several failures in anti-money laundering and social responsibility, they were both the subject of separate parliamentary investigations.

 The government started an enforcement probe into Entain's activities in September after a "extensive supervisory campaign," citing concerns about AML and CTF.