SkyCity Entertainment Group, a gaming operator in New Zealand and Australia, has announced an agreement with New Zealand authorities over breaches of anti-money laundering and counter-terrorism financing (AML/CFT) regulations. The company has agreed to pay a civil penalty of NZ$4.16 million (US$2.54 million), pending approval by the High Court of New Zealand. A hearing will be sought at the earliest opportunity.
This development follows SkyCity’s recent agreement with AUSTRAC, the Australian financial crimes watchdog, to pay AU$44.5 million for similar breaches at its SkyCity Adelaide property.
The New Zealand penalty pertains to deficiencies in SkyCity’s AML/CFT risk assessment and program, which were not fully addressed until July 2021. The breaches, admitted by the company, span from 2018 to 2023 and involve primarily historical matters.
Since late 2021, SkyCity has implemented a significant AML/CFT enhancement program to address compliance issues and rectify past shortcomings. This program included a complete overhaul of the SkyCity Board, the appointment of directors with specialist risk expertise, and the creation of a Board Risk and Compliance Committee. The company has also applied higher standards of due diligence and lowered cash thresholds before enhanced customer due diligence is required. Additionally, SkyCity ended its associations with junket operators in April 2021.
SkyCity has committed to implementing a mandatory carded plan across its New Zealand properties by mid-2025.
SkyCity Executive Chair Julian Cook stated, “Considerable progress has been made towards upgrading our AML/CFT systems. This does not lessen the seriousness with which we take these breaches, and we are disappointed that SkyCity is in this position.”
The company aims to resolve its other regulatory matters quickly, including the temporary suspension of its New Zealand casino operator’s license. SkyCity is also working with Australian authorities on the independent review of SkyCity Adelaide, which was paused pending AUSTRAC civil proceedings.
Julian Cook emphasized, “Our enhancement activities remain ongoing, and we have further important work to do in New Zealand and Australia, which will take time to complete.”
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