SkyCity to pay over $4 million after breaching anti-money laundering laws

Tuesday, 21 May 2024

• Entertainment group SkyCity are set to pay over $4 million in penalties after breaching anti-money laundering obligations.

• The breaches happened across a five year period.

• A High Court is set to finalise the total penalty amount.

SkyCity are set to pay a $4.16 million penalty, after settling with the Department of Internal Affairs over a breach in anti-money laundering obligations.

According to the DIA, a review between September 2022 and December 2023 showed SkyCity breached its Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) obligations on five fronts.

As part of the settlement, both the DIA and SkyCity would submit to the High Court that a penalty of $4.16m be paid - but the final decision is up to the court.

The breaches relate to the monitoring of accounts and transactions, conducting customer due diligence, terminating existing business relationships when required and other breaches relating to AML/CFT risk assessment.

The breaches happened between 2018 and 2023.

There was no evidence in the DIA review to suggest that SkyCity was directly involved in money laundering or the financing of terrorism, they said.

Director of AML/CFT Group DIA Mike Stone said they consider the regulatory breaches to be serious.

“We have achieved our desired result without the extended duration and cost of court proceedings.”

Stone said he was pleased that SkyCity was able to admit to the beaches and acknowledge responsibility for the significant failings.

“We will be working closely with SkyCity in the future in relation to its ongoing compliance obligations.”

SkyCity had already done some work to lift its performance, he said.