SkyCity allocates AU$45m for upcoming AUSTRAC penalty
SkyCity Entertainment has recently provisioned 45 million dollars for an upcoming AUSTRAC fine.
Back in December of last year, AUSTRAC initiated a proceeding against the gambling and hospitality firm’s operations in Adelaide for several alleged violations of the country’s AML and CTF regulations. The failures were alleged to be serious and of a systemic nature, which could lead to a penalty of up to 22 million Australian dollars each. This has led SkyCity to set aside 45 million dollars, which will cover not only the potential fine but also any associated auxiliary legal costs.
The company stated that its latest provision is an estimation of the maximum cost of the upcoming penalty and that it cannot accurately determine the amount of the fine at this time. It added that the proceedings are still at an early stage, with both parties actively working together toward reaching a conclusion for the case. The company added that it is uncertain of the potential timeframe of the penalty as well.
Furthermore, along with announcing its latest provision, SkyCity also published an update on its annual impairment review, which has determined an impairment of just over 45 million Australian dollars to the value of the company’s Adelaide operating license.