SkyCity announced the penalty in June when it settled the AML/CTF case with New Zealand’s Department of Internal Affairs (DIA). The High Court has now finalised the fine, with SkyCity having 15 working days from today (26 September) to pay in full.
What did the DIA settlement include?
The DIA in February announced it would file high court proceedings against SkyCity and its SkyCity Casino Management (SCML) subsidiary. This refers to alleged non-compliance with the country’s Anti-Money Laundering and Countering Financing of Terrorism Act 2009.
The case came to light in February 2022 when a SkyCity Auckland customer filed a complaint with the DIA. This focused on SkyCity failing to comply with responsible gambling rules and regulations between August 2017 and February 2021.
During its investigation, the DIA raised concerns over continuous play at the casino. In its response, SkyCity admitted to failings across AML and CTF. However, it also referenced an enhancement program it has been running since late 2021 to improve operations.
In addition to the fine, it was also agreed SkyCity would shutter its Auckland casino for five days. The gaming area and food and beverage outlets in this section of SkyCity Auckland closed from 9-13 September.
Finalisation of the fine formally closes the DIA’s civil proceedings against SkyCity.
SkyCity commits to further improvements
Commenting on the closure of the matter, SkyCity CEO Jason Walbridge said the operator is now looking to move forward. He added that it will continue to make improvements to its AML and CTF measures.
“SkyCity is aware that as a casino operator we have a responsibility to combat money laundering and terrorism financing,” Walbridge said. “This is a responsibility we take very seriously.
“We will continue to upgrade our AML and CTF systems to ensure we meet both regulatory obligations and the expectations of the communities in which we operate.”
SkyCity also faces charges in Australia
In addition to the DIA case in New Zealand, SkyCity has been penalised in Australia over similar failings.
SkyCity in May agreed with the Australian Transaction Reports and Analysis Centre (Austrac) to pay a AU$67.0m civil penalty. This also relates to historical AML and CTF failings; this time at its land-based casino in Adelaide.
In June, the Federal Court of Australia approved the agreement to resolve civil penalty proceedings. It also ordered SkyCity to pay Austrac’s costs of $3.0m
Unsurprisingly, these settlements had a negative impact on SkyCity’s financial performance in 2024. Last month, it reported a NZ$140.4m loss for the year.
Original article: https://igamingbusiness.com/legal-compliance/new-zealand-high-court-finalises-skycity-aml-penalty/
