“We will continue to upgrade our anti-money laundering and counter-terrorism financing systems to ensure we meet both our regulatory obligations and the expectations of the communities in which we operate,” he added.
The DIA took civil proceedings against SkyCity for breaching its Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) obligations.
DIA general manager Regulatory Services John Sneyd said Justice Neil Campbell ordered SkyCity to pay an agreed civil pecuniary penalty of $4.16m.
SkyCity would also pay towards the department’s legal costs.
“We are pleased the court, DIA and SkyCity were able to finalise the settlement agreement promptly. For us to achieve this without years of court proceedings and legal costs is a great outcome,” Sneyd said.
“Casinos can be an attractive way for criminals to launder proceeds of crime. We cannot take the risk that criminals might choose New Zealand casinos as a way of cleaning their dirty money. Casinos must have robust processes in place to protect them from misuse.”
He said the DIA was satisfied SkyCity admitted responsibility for the failings, and with the company’s efforts to meet AML/CFT obligations to ensure similar breaches did not happen again.
Internal Affairs conducted a review of SkyCity’s compliance between September 2022 and December 2023 and found SkyCity breached its obligations.
Earlier this year the company admitted breaches spanning from 2018 to 2023.
The review focused primarily on international business customers and found systemic non-compliance and breaches of the company’s obligations relating to risk assessment and other issues.
Those other issues included establishing, implementing and maintaining an AML/CFT compliance programme, monitoring accounts and transactions, and terminating existing business relationships when required.
There was no evidence to suggest SkyCity was directly involved in money laundering or the financing of terrorism.
The High Court on September 5 heard the company had stopped dealing with international casinos or money remitters on behalf of clients.
The casino’s counsel Alix Boberg said these changes were part of a series of reforms tackling high-risk aspects of the casino’s international business.
The Auckland casino operator could have faced a fine exceeding $5m but Boberg said it agreed with Internal Affairs that a 25% discount was available.
On a separate matter, SkyCity voluntarily shut its Auckland casino floor for five days earlier this month after breaching its host responsibility programme.
