Finalisation of SkyCity AML penalty by the New Zealand High Court

 For failing to comply with New Zealand's anti-money laundering and counter-terrorism financing (AML/CTF) requirements, the New Zealand High Court formally fined SkyCity Entertainment Group NZ$4.16 million (£1.96 million, €2.34 million, or US$2.61 million).
 In June, when SkyCity settled the AML/CTF case with New Zealand's Department of Internal Affairs (DIA), the company announced the penalty.  The High Court has now decided on the fine, and SkyCity has until today, September 26th, to pay it in full.

 In what ways was the DIA settlement structured?
 A subsidiary of SkyCity, SkyCity Casino Management (SCML), was named in February as the target of high court proceedings initiated by the DIA.  Alleged violations of the country's 2009 Anti-Money Laundering and Countering Financing of Terrorism Act are at the heart of this matter.

 A client of SkyCity Auckland lodged a complaint with the DIA in February 2022, bringing the case to light.  The main point was that from August 2017 to February 2021, SkyCity did not follow the norms and regulations on responsible gambling.

 Constant gaming at the casino was one of the issues brought up by the DIA throughout its inquiry.  The answer from SkyCity acknowledged that there were issues with AML and CTF.  But it did mention an improvement initiative that has been going strong since the end of 2021 to make things run better.

 Along with the penalties, the parties also agreed that SkyCity will temporarily close its casino in Auckland for five days.  From September 9th until the 13th, SkyCity Auckland's casino area and food and beverage shops were closed.

 The DIA's civil procedures against SkyCity have been officially concluded with the finalisation of the fine.

 Continuing to enhance its services, SkyCity assures
 In light of the matter's resolution, SkyCity CEO Jason Walbridge stated that the operator is now seeking to proceed.  Further enhancements to its AML and CTF measures would be made, he said.

 The responsibility to prevent money laundering and terrorism financing is something that SkyCity is fully aware of, according to Walbridge.  We are fully committed to fulfilling this obligation.

 We are committed to meeting our regulatory requirements as well as the expectations of the communities where our operations are based, which is why we will keep improving our AML and CTF systems.

 SkyCity is also being investigated in Australia.
 Similar failures have resulted in penalties for SkyCity in Australia, as well as in the DIA case in New Zealand.

 SkyCity settled a civil penalty of $67.0 million with Austrac, the Australian Transaction Reports and Analysis Centre, in May.  Similar to its earlier AML and CTF blunders, this one occurred at its Adelaide brick-and-mortar casino. 

 The agreement to end civil penalty proceedings was granted by the Federal Court of Australia in June.  Austrac was also ordered to pay SkyCity $3 million in fees.

 It is hardly surprising that SkyCity's financial performance in 2024 was negatively affected by these settlements.  Its annual deficit was NZ$140.4m, as announced last month.