“We have a remediation plan in place to ensure our policies, processes and controls are robust,” he said this afternoon.
“This plan is under way and will make certain we meet our regulatory requirements and live up to the trust that is placed in us by our community.
“We are committed to getting this right, not just for today but also for the future, and look forward to working with the DIA to ensure that we do.”
The DIA said it investigated the casino between May 2023 and September 2024, and found breaches of several legal obligations.
It said the casino had agreed to join the department in recommending that the High Court impose a penalty of $5.06m.
The DIA said the casino failed to establish, implement and maintain a compliant anti-money laundering programme.
It did not adequately monitor accounts, conduct compliant enhanced customer due diligence, or terminate existing business relationships when required.
The failures spanned five years from December 2018 to December 2023.
DIA director of anti-money laundering Serge Sablyak said: “This agreement is a significant and positive outcome.
“It’s encouraging to achieve our intended result without the time and expense of court proceedings.”
“While the regulatory breaches were serious, we acknowledge Christchurch Casino’s decision to admit to the breaches and take responsibility for what were substantial failings.”
Sablyak said the investigation helped to strengthen the integrity of New Zealand’s financial system.
It also helped to build public confidence in the prevention of money laundering and terrorism financing.
A penalty hearing is likely to be held to determine the appropriate compensation.
Christchurch Casino is not the first New Zealand operator to face penalties for breaching anti-money laundering rules.
Last September, Auckland-based SkyCity Entertainment Group confirmed it was fined $4.16m for breaching anti-money laundering and terrorism financing obligations.
John Weekes is a business journalist mostly covering aviation and court. He has previously covered consumer affairs, crime, politics and court.
