SkyCity Adelaide agrees to pay $67 million fine, but court will decide if penalty is appropriate

AUSTRAC's chief executive officer says that action was taken after SkyCity failed to carry out diligence. (ABC News: Sarah Mullins)

The operator of the Adelaide Casino has agreed to pay a $67 million fine as an "appropriate penalty" after it accepted it had engaged in misconduct.

In a statement, SkyCity Adelaide and the Australian Transaction Reports and Analysis Centre (AUSTRAC) said they had filed a joint submission with the Federal Court of Australia to propose a $67 million penalty over the casino's misconduct.

AUSTRAC launched a Federal Court action against SkyCity in December 2022, alleging systemic non-compliance with anti-money laundering and counter-terrorism financing laws.

It says that SkyCity "failed to carry out due diligence on 124 customers".

While both parties agree it is an appropriate penalty, a court hearing has been set for next month.

Justice Michael Lee will determine if the parties' proposed settlement is appropriate.

AUSTRAC's chief executive officer, Brendan Thomas, said SkyCity failed to carry out diligence.

"AUSTRAC took this action out of concern that SkyCity's conduct meant that a range of high-risk practices, behaviours and customer relationships were allowed to continue unchecked for many years," Mr Thomas said.

Mr Thomas said the action serves as an important reminder to casinos and the gaming sector to take their obligations seriously and be vigilant to money laundering and terrorism financing risks.

SA Best MLC Connie Bonaros said the joint submission was a move forward, but ultimately the appropriateness of the penalty proposed will rest with the court.

"These are significant, very distributing breaches that have been occurring over a long period of time and so what I am relieved about is that they're finally being addressed," Ms Bonaros said.

"If [the penalty] is $67 million, then the casino can count its lucky stars because they were up for a lot more in terms of the breaches, more importantly it's shone a light on that sort of conduct taking place in this jurisdiction over many years with little, if not no action."