SKY City Auckland forced to close down gambling floors for 5 days! Will Ellerslie be ready?

[Chief Stipe]

SkyCity Entertainment Group to shut Auckland casino for five days after Internal Affairs action

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That has since been rectified, it said.

The company has formally apologised for its failures.

In February, the Department of Internal Affairs filed charges against the company, a chief saying then is important criminals don’t launder money in New Zealand.

“Casinos can be an attractive way for criminals to launder proceeds of crime,” said Mike Stone, the department’s group director of anti-money laundering and counter-terrorism financing on February 16.

“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 then.

SkyCity said at the time it was “disappointed” it had not met the standard to which it needed to hold itself. The gaming giant would engage with the department on proposed proceedings, to resolve these matters quickly and efficiently.

The department alleged SkyCity did not meet its obligations relating to its risk assessment; establishing, implementing and maintaining an AML/CFT compliance programme; monitoring accounts and transactions; conducting enhanced customer due diligence; and terminating existing business relationships.

These alleged failures variously spanned from February 2018 to March 2023, it said.

Under the AML/CFT Act, all casinos in New Zealand are required to meet a range of regulatory obligations to detect and deter money laundering and the financing of terrorism.

 

But by May, the company had struck a deal with the DIA for non-compliance on anti-money laundering and terrorism financing law breaches.

Julian Cook, chairman, said on May 21 that the company had admitted it breached its obligations.

“On behalf of the SkyCity board and management team, I accept and apologise for these long-standing failings,” Cook said.

“We have fallen short of the standards we should hold ourselves to, alongside failing to meet the expectations of our regulators, customers, shareholders and the communities we are part of.

“We are committed to, and have begun, delivering the level of change that is required to meet these expectations.”

Internal Affairs said: “The parties have agreed to jointly submit to the court that a penalty of $4.16m is appropriate in this case, though the final determination is for the court.”

SkyCity had admitted to all five causes of action in Internal Affair’s statement of claim and agreed to pay a penalty for the breaches.

Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.