In a significant development within New Zealand’s gambling industry, SkyCity Entertainment Group has reached a groundbreaking US$2.5 million agreement to settle historical failures in its anti-money laundering (AML) compliance procedures at its local casinos. This settlement agreement comes in the wake of an investigation conducted by the Internal Affairs Department (IAG) of New Zealand, which uncovered multiple instances of non-compliance with the country’s AML laws and regulations.
The investigation, which began in 2019, focused on SkyCity’s practices at its Auckland, Hamilton, and Queenstown casinos. It revealed systemic failures in monitoring high-risk customers, reporting suspicious transactions, and conducting proper customer due diligence. These failures are particularly concerning given the potential for money laundering and terrorist financing activities to occur within the gambling industry.
Following the investigation, the IAG issued a formal warning to SkyCity, stressing the need for the company to address deficiencies in its AML compliance program. Subsequently, SkyCity undertook a comprehensive review of its AML procedures, policies, and staff training to ensure full compliance with New Zealand’s AML laws.
The US$2.5 million settlement reached between SkyCity and the IAG represents a significant step towards rectifying past AML failures and demonstrating the company’s commitment to upholding the highest standards of regulatory compliance. In addition to the financial settlement, SkyCity has also agreed to implement a series of remedial measures aimed at strengthening its AML program and preventing future non-compliance incidents.
Commenting on the settlement, SkyCity CEO Michael Ahearne stated, “We take our regulatory obligations very seriously and acknowledge the need for ongoing improvement in our AML compliance processes. We have cooperated fully with the IAG throughout the investigation and are committed to implementing the necessary changes to strengthen our AML program.”
The IAG has welcomed SkyCity’s proactive approach to addressing its AML deficiencies and has expressed confidence that the company will take the necessary steps to enhance its AML compliance practices moving forward. This settlement serves as a reminder to all New Zealand casinos of the importance of maintaining robust AML programs to protect against financial crime and uphold the integrity of the country’s gambling industry.
Overall, the US$2.5 million agreement between SkyCity and the IAG marks a significant milestone in the ongoing efforts to combat money laundering and ensure that New Zealand’s casinos operate in a safe and responsible manner. It serves as a clear signal that regulatory authorities will not hesitate to hold operators accountable for AML failures and underscores the importance of maintaining vigilance in detecting and preventing financial crime within the gambling sector.
