New Zealand’s SkyCity Casino Faces Civil Proceedings Due to Alleged AML Violations

SkyCity Entertainment’s SkyCity Casino Management (SCML) brand is facing potential civil proceedings in New Zealand over alleged violations of the country’s Anti-Money Laundering and Countering Financing of Terrorism Act. The local Department of Internal Affairs is preparing to file the case in four days, and if found guilty, the operator could be fined $4.9 million.

SCML operates the SkyCity casinos in Auckland, Hamilton, and Queensland and has confirmed that it is aware of the proceedings. The company has vowed to cooperate with the Department of Internal Affairs to address any issues and has expressed disappointment in failing to meet the necessary standards.

The operator and its parent company are committed to working with the department to resolve the matter and improve its AML and CTF processes. Details of the alleged violations have not been disclosed, but SkyCity has indicated that it self-reported some incidents to the relevant authorities.

Despite launching an AML and CTF enhancement program in 2021 to address historical deficiencies, SkyCity continues to struggle with compliance. The company invested in technology and manpower in an effort to improve its practices but still finds itself at risk of license suspension and potential penalties.

In addition to the civil proceedings in New Zealand, SkyCity also set aside $29.2 million for potential penalties amid proceedings with AUSTRAC in Australia. The financial intelligence agency has accused the company of allowing 59 suspicious patrons to launder billions of Australian dollars at its property in Adelaide.

The operator’s ongoing challenges with AML matters underscore the importance of regulatory compliance in the gambling industry, and the potential financial and reputational consequences for companies that fail to meet these standards. SkyCity is working to address these issues and improve its practices to avoid further regulatory scrutiny and potential penalties.

By admin