Operator News
SkyCity agrees to second multi-million AML fine in days, this time in New Zealand
By Phil - 21 May 2024
Having agreed an AU$67m financial penalty with AUSTRAC for AML breaches at its Adelaide casino just days ago, New Zealand-based casino group SkyCity Entertainment has agreed to pay $2.5m to New Zealand’s Department of Internal Affairs (DIA) for similar failings.
As part of the settlement agreed to by both parties, SkyCity has admitted to all five causes of action in DIA’s statement of claim. SkyCity has also agreed to pay a penalty for the breaches.
The parties will now recommend to the High Court that the proceedings can move to a penalty hearing, where a penalty amount will be determined. Between September 2022 and December 2023, DIA conducted a review of SkyCity’s AML/CFT compliance, which found it breached its obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.
The breached obligations related to its AML/CFT 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.
“This agreement is an impactful outcome,” said Mike Stone, Director AML/CFT Group DIA. “We have achieved our desired result without the extended duration and cost of court proceedings. While we consider these regulatory breaches to be serious, we are pleased that SkyCity was able to admit to the breaches and acknowledged responsibility for what were significant failings.”
“It is encouraging to see the work SkyCity has already done to lift its performance in this area and its public commitment to continue to improve. We will be working closely with SkyCity in the future in relation to its ongoing compliance obligations.”
“We are proud that our work has contributed to the integrity of New Zealand’s financial system and can encourage public confidence in our regulations aimed at deterring money laundering and terrorism financing.”
SkyCity Executive Chair Julian Cook said: “SkyCity has been subject to regulatory enforcement action in both Australia and New Zealand and those regulators are rightly holding SkyCity to account. Over the past few years, considerable progress has been made towards upgrading our anti-money laundering and countering terrorism financing (AML/CFT) systems. This does not lessen the seriousness with which we take these breaches and we are disappointed that SkyCity is in this position. As a casino operator, we play a key role in combatting money laundering and terrorism financing and we take that responsibility seriously.
“On behalf of the SkyCity Board and management team, I accept and apologize for these long-standing failings,” he added. “We have fallen short of the standards we should hold ourselves to, alongside failing to meet the expectations of our regulators, customers, shareholders and the communities we are part of. We are committed to, and have begun, delivering the level of change that is required to meet these expectations.”
