Christchurch Casino faces civil proceedings for alleged AML/CFT breaches

The New Zealand Department of Internal Affairs is taking action over alleged non-compliance.

New Zealand.- The Department of Internal Affairs (DIA) has filed civil proceedings at the High Court against Christchurch Casinos for alleged breaches of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act). It says the operator failed to meet its responsibilities to create and maintain a strong compliance programme, conduct thorough checks on customers, end business relationships when necessary, monitor accounts and keep required records between December 2018 and December 2023.

The DIA said Christchurch Casino is not “alleged to be directly involved in money laundering or the financing of terrorism.” However, under the AML/CFT Act, all reporting entities are required to have adequate policies, procedures and controls.

Serge Sablyak, director of the AML/CFT Group at DIA, said: “New Zealand casinos can be used by criminals to launder money and fund terrorism if strong processes are not in place. Casinos must put strong measures in place to stop this Casinos and other businesses that do not meet these standards will face consequences from DIA and other supervisors of the AML/CFT system.

“While this case is in court, we cannot comment further, but DIA will continue to take action against businesses that fail to meet their AML/CFT obligations.”

Christchurch Casinos said in a statement: “Christchurch Casino has in place enhancement programmes in relation to AML/CFT compliance. This has evolved, and continues to involve, significant investment in people and technology, and various reviews of Christchurch Casinos’ processes and systems to identify areas which require improvement and updating.

“Christchurch Casino takes its AML/CFT compliance obligations seriously and intends to engage constructively with the DIA in relation to the proposed legal proceedings, with a view to resolving these matters as quickly as possible.

“The company, which is owned by Skyline Enterprises, said it believes it is currently compliant with the Act. As the matter is to be before the High Court, Christchurch Casino is not able to comment further at this time.”

New Zealand bill proposes expansion of TAB NZ horse racing betting monopoly

Deputy prime minister Winston Peters, who holds the brief for racing, has announced the introduction of amendments to the Racing Industry Act 2020. Proposed changes would extend TAB NZ’s monopoly on sports and racing betting from land-based operations to online platforms.

The proposed amendments also give the minister new powers to get information from TAB NZ and to oversee the ban on other betting operators. It also introduces rules for preventing harm and protecting consumers and removes the Point of Consumption Charge. The bill will go to the Governance and Administration Committee for further review.

See also: New Zealand online casino bill to be presented next year