SkyCity faces civil penalty proceedings for anti-money laundering violations

The New Zealand Department of Internal Affairs is taking action over alleged historical compllaince issues.

New Zealand.- New Zealand’s Department of Internal Affairs (DIA) is moving forward with civil penalty proceedings against SkyCity for alleged breaches of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act). 

According to a company filing, the DIA’s decision comes after a review of SkyCity’s compliance with the act and involves historical compliance issues outlined in draft pleadings. If the High Court agrees with the department’s claim, SkyCity could face a civil penalty of up to NZ$8m (US$4,88m). 

The company stated: “Since late 2021, SkyCity has had in place a significant AML/CFT enhancement programme to address compliance systems and correct historical shortcomings. This has involved, and continues to involve, significant investment in people and technology, and various reviews of SkyCity’s processes and systems to identify areas which require improvement.

“SkyCity is disappointed that it has not met the standard to which it needs to hold itself, and this has resulted in the action taken by the Department. SCML and SkyCity will engage constructively with the Department in relation to the proposed proceedings, with a view to resolving these matters expeditiously. Given that the matter will be before the Court, it would be inappropriate for SkyCity to comment further at this stage.”

SkyCity said it is committed to improving its processes and systems, especially regarding AML/CFT and host responsibility matters.

See also: SkyCity sets aside US$46m for AML penalty

For the fiscal year 2023, the casino operator posted revenue of NZ$926.2m (US$551m), up 44.9 per cent year-on-year from NZ$639m (US$395m).