SkyCity puts aside $45m for potential AUSTRAC penalty
SkyCity Entertainment set aside $45 million for a penalty if it is convicted of breaches of anti-money laundering and counterterrorism laws.
The financial crimes watchdog, AUSTRAC, lodged proceedings against SkyCity in December over alleged serious and systemic non-compliance with the laws at its Adelaide casino.
SkyCity Adelaide’s owner has written down the value of the casino licence. SATC
SkyCity said on Monday it was difficult to determine the size and timing of the penalty, given the proceedings are in the early stages. But it decided to lodge a $45 million provision on the basis that each breach attracts a maximum civil penalty of between $18 million and $22.2 million.
“Estimating the potential exposure to penalties with any degree of accuracy at this stage of that ongoing process remains challenging, particularly given the outcome is highly dependent on a range of factors which are not yet known,” a statement said.
AUSTRAC has alleged “serious noncompliance” with anti-money laundering laws against SkyCity, claiming the company allowed 59 suspicious patrons to churn more than $4 billion in dirty cash through its Adelaide casino. The independent review is on hold because of the Federal Court action.
The company cut full-year earnings expectations at an investor day in May, with a slowdown in revenue from the international business and rising legal and compliance costs related to a crackdown on money laundering weighing on its bottom line. Analysts have provisioned about $50 million for the AUSTRAC fine, but there is no guarantee that will be enough.
In late May, SkyCity announced it would hire an independent expert to review its anti-money laundering and counter-terrorism programs. It is still waiting for South
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