The VIP area of SkyCity Adelaide was considered the area of interest. Photo / Sarah Ivey
Adelaide is the sole focus of the SkyCity Entertainment Group investigation, and the VIP revenues that are said to be the focus of the surveys represent only 1% of the group’s revenues, an investment analyst said today.
Andrew Kelleher, director of JMI Wealth in Auckland, told today’s Mike Hosking Breakfast on Newstalk ZB that the allegations were also historic, going back to the past decade.
SkyCity is listed on both the NZX and the ASX “so problems with the investigation into SkyCity’s activities were revealed on Monday, the Australian share price fell 6.5%” .
The Australian Center for Transaction Analysis and Reporting [Austrac] stated that it identified a potential non-compliance by SkyCity Adelaide with the Australian Money Laundering and Terrorist Financing Act 2006 and the 2007 Anti-Money Laundering and Financing Rules Instrument terrorism.
“So to put a bit of context, first of all, these are historical allegations,” Kelleher said today.
“This refers to 2015/16, which goes back some time, and 2018/19, so we have no idea how long this survey will take. It could be quite long and it refers to income in the area. SkyCity Adelaide VIP which I think is the problem.
“This represents around 1% of the group’s income. So based on that, you wouldn’t expect the resulting potential charges to be significant. We do not know yet. But that’s the wait. This begs the question: is there a risk across the rest of the business?
“New Zealand obviously has a different regulator. As far as I know SkyCity has recently invested heavily in AML processes and major customers.
“It’s not just SkyCity,” Kelleher noted.
The National Australia Bank, Crown Perth and Star all face the possibility of multi-million dollar penalties for potential violations of anti-money laundering laws.
Kelleher noted that news of the investigation was released on Monday, the New Zealand Queen’s birthday holiday.
SkyCity said yesterday that the potential serious non-compliance included concerns about ongoing customer due diligence, adoption and maintenance of an AML / CTF program, and compliance with Part A of a program. by LBC / CTF.
These concerns were identified during a compliance assessment that Austrac began in September 2019 focusing on SkyCity Adelaide’s management of clients identified as high risk and politically exposed persons during the periods from July 1, 2015 to June 30, 2016, and July 1, 2018 to June 30, 2019. The case was referred to the Austrac law enforcement team, who initiated a formal investigation into the enforcement of the SkyCity Adelaide compliance law.
“Austrac has made it clear that it has not made a decision regarding the appropriate regulatory response it may take to SkyCity Adelaide, including whether or not enforcement action will be taken. Austrac has indicated that it will seek information from SkyCity as part of its investigation. SkyCity will cooperate fully with Austrac in relation to these investigations and the SkyCity Adelaide investigation. “
The company said it takes its responsibilities and obligations to combat money laundering seriously.
“SkyCity has processes and practices in place in its business to detect and prevent money laundering and continuously reviews them to ensure that it meets all anti-money laundering requirements,” said the company Tuesday at 8:30 am in a market update.
A spokesperson for SkyCity said today the company had no further comment. General Manager Michael Ahearne does not speak further on the matter.
The shares traded on the NZX around $ 3.45 yesterday.
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This notice was published: 2021-06-08 19:54:03