Casino operator SkyCity has reached a settlement with New Zealand’s Department of Internal Affairs (DIA) over violations of anti-money laundering (AML) and counter-terrorism financing laws. The settlement, which includes an admission of guilt, involves a penalty of nearly $4.2 million and awaits approval by the High Court. Last week, SkyCity settled with Australian authorities for nearly $74 million over similar AML violations at its Adelaide casino.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) highlighted that SkyCity failed to conduct necessary checks on high-risk gamblers, with allegations that as much as A$4 billion might have been laundered through the Adelaide casino since 2016. Large sums of money were reportedly used in envelopes and plastic bags, sometimes in dirty conditions.
The proceedings in New Zealand began in February 2024. SkyCity‘s executive chair, Julian Cook, acknowledged the gravity of the situation, stating that regulators in both Australia and New Zealand were “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 systems,” Cook said. “This does not lessen the seriousness with which we take these breaches, and we are disappointed that SkyCity is in this position.”
Cook emphasized SkyCity‘s commitment to its responsibilities in combating money laundering and terrorism financing, apologizing for the long-standing failings. “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,” he added.
Despite the resolution of these regulatory matters, SkyCity continues to face the potential threat of a temporary suspension of its local casino license due to alleged breaches of the host responsibility code.
