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SkyCity Penalised $4.16 Million For Anti-Money Laundering And Countering Financing Of Terrorism Breaches
The Auckland High Court has released its judgment regarding the Department of Internal Affairs’ (DIA) civil proceedings against SkyCity Casino Management Limited (SkyCity) for breaching its Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) obligations.
Today, Hon Justice Campbell, sitting in the Auckland High Court, ordered SkyCity to pay an agreed civil pecuniary penalty of $4.16 million NZD, following SkyCity admitting to all five causes of action in DIA’s statement of claim. SkyCity will also pay toward the Department’s legal costs.
“We are pleased the Court, DIA and SkyCity were able to finalise the settlement agreement promptly. For us to achieve this without years of court proceedings and legal costs is a great outcome.” says John Sneyd, General Manager Regulatory Services, DIA.
“Casinos can be an attractive way for criminals to launder proceeds of crime. We cannot take the risk that criminals might choose New Zealand casinos as a way of cleaning their dirty money. Casinos must have robust processes in place to protect them from misuse."
“We are satisfied that SkyCity admitted responsibility for their significant failings alongside their continued improvement to meet their AML/CFT obligations, to make sure breaches like these don’t happen again.”
“DIA is steadfast in its commitment as a supervisor in New Zealand's AML/CFT system and this result shows that if a business fails to meet its AML/CFT obligations, we will act accordingly.”
The Department of Internal Affairs conducted a review of SkyCity’s AML/CFT compliance between September 2022 and December 2023. The review found SkyCity breached its obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.
The review by DIA focused on SkyCity’s AML/CFT compliance relating primarily to its international business customers and found systemic non-compliance and breaches of its obligations relating to risk assessment, establishing, implementing and maintaining an AML/CFT compliance programme, the monitoring of accounts and transactions, conducting compliant enhanced customer due diligence, and terminating existing business relationships when required. These failures spanned between February 2018 and March 2023.
There was no evidence to suggest that SkyCity was directly involved in money laundering or the financing of terrorism.
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