The Australian Financial Regulatory Authority (AUSTRAC) has initiated civil proceedings against SkyCity Entertainment for alleged breaches of anti-money laundering and terrorism financing laws.
The New Zealand operator warned that if the Federal Court accepted all of the Australian Transaction Reports and Analysis Center's (AUSTRAC) findings, the impact on the company would be "material".
SkyCity said it understood AUSTRAC had yet to determine the extent of its penalties.
AUSTRAC's action follows an investigation into all Australian casino operators that began in 2019. As a result of that investigation, SkyCity was notified that it was the subject of a law enforcement investigation.
The regulator also said late last month that it had filed a civil lawsuit against its competitor Star Entertainment.
AUSTRAC said in a statement on Wednesday that SkyCity's Adelaide casino had committed "serious and systemic breaches" of Australia's anti-money laundering and counter-terrorism financing laws.
AUSTRAC deputy chief executive Peter Soros said: "AUSTRAC's findings found that SkyCity failed over an extended period of time to conduct appropriate long-term customer due diligence and to develop and maintain a compliant AML/CFT programme. , which would increase the risk of being exploited by criminals.”
Soros believes that these errors make SkyCity Adeladie potentially exploitable by criminals. Regulators are working with the company to ensure it meets its obligations in the future.
Australia's casino industry has been under the spotlight since an investigative documentary revealed serious illegal activities at Crown Resorts.
The report triggered a series of regulatory investigations in the states where Crown Resorts operates, all of which found the operator was unfit to hold a licence.
