In a landmark decision that has sent shockwaves through the New Zealand gambling industry, SkyCity Entertainment Group has settled a high-profile case involving anti-money laundering (AML) violations. The Auckland-based company, which operates several popular casinos across the country, has agreed to pay a hefty fine and implement a series of stringent compliance measures to prevent future breaches.
The investigation into SkyCity’s AML practices was launched by the Department of Internal Affairs (DIA) in response to concerns raised by the Financial Intelligence Unit (FIU) about potential money laundering activities at the company’s properties. The probe revealed a number of serious deficiencies in SkyCity’s AML systems and controls, including a lack of proper customer due diligence procedures, inadequate staff training, and weak monitoring of high-risk transactions.
According to DIA officials, these shortcomings had allowed criminal elements to exploit the casinos for illicit purposes, such as money laundering and terrorist financing. In one particularly egregious case, a high-rolling gambler known to have ties to organized crime groups was able to deposit and withdraw significant sums of cash without arousing suspicion from casino staff.
In response to these findings, SkyCity has agreed to a settlement with the DIA that includes a financial penalty of $5 million, the largest ever imposed on a gambling operator in New Zealand. In addition, the company will be required to undertake a comprehensive review of its AML policies and procedures, appoint an independent monitor to oversee its compliance efforts, and provide regular reports to the DIA on its progress.
SkyCity’s CEO, Graeme Stephens, has expressed regret over the company’s past failures and committed to working closely with regulatory authorities to ensure strict adherence to AML laws in the future. “We take these issues very seriously and are fully committed to upholding the highest standards of integrity and transparency in all aspects of our operations,” Stephens said in a statement.
The settlement has been met with a mix of relief and outrage from industry stakeholders. While some have praised SkyCity for taking responsibility for its mistakes and taking steps to rectify them, others have criticized the company for allowing such serious breaches to occur in the first place.
Despite the financial and reputational damage caused by the AML scandal, SkyCity remains one of New Zealand’s leading gambling companies, with a strong presence in the Auckland and Queenstown markets. Its ability to bounce back from this setback will depend on its ability to rebuild trust with regulators, customers, and the wider community. Only time will tell whether the company can overcome this major hurdle and emerge stronger than ever.
