Australian Federal Court Fines SkyCity $44.7 Million

The Federal Court of Australia has approved a significant fine of $44.7 million imposed on SkyCity Entertainment Group by the Australian Transaction Reports and Analysis Center (Austrac). The penalty is related to allegations of involvement in financial laundering and terrorist financing through its land-based casino operations in Adelaide.

Both SkyCity and Austrac presented their cases to the court, which ultimately upheld the fine and additionally ordered SkyCity to cover Austrac's costs amounting to $3 million.

Peter Soros, acting chief executive of Austrac, expressed satisfaction with the court's decision and stressed the importance of casinos and other businesses adhering strictly to anti-money laundering obligations. He highlighted that weak control systems in gambling organizations can make them susceptible to criminal exploitation.

In response to the fine, SkyCity has announced significant changes in its management. Jason Walbridge is set to take over as CEO next month, succeeding Michael Ahern, who recently departed from the company. Additionally, Chief Financial Officer Julie Amy is also leaving her position.

The fine marks a substantial regulatory setback for SkyCity, prompting a leadership transition as the company seeks to strengthen its compliance and governance in the wake of the Austrac findings.