The casino management division of SkyCity Entertainment, SkyCity Casino Management (SCML), finds itself navigating troubled waters in New Zealand, following news that the nation’s Department of Internal Affairs is gearing up to initiate civil proceedings against the company.
The department will reportedly lodge the case in a matter of four days, sparked by supposed breaches of Anti-Money Laundering (AML) regulations. As per the authorities, the betting giant has supposedly contravened the provisions of the New Zealand Anti-Money Laundering and Countering Financing of Terrorism Act.
Consequently, SCML, the management entity for SkyCity casinos in Auckland, Hamilton, and Queensland, is staring down the barrel of a potential $4.9 million fine.
In their response, SkyCity confirmed that they are cognizant of the pending proceedings and pledged full cooperation with the Department of Internal Affairs to identify and rectify any lapses. A company representative expressed regret, stating that the firm is “disappointed at falling short of the standards it should uphold.”
Reaffirming their commitment to cooperation, SCML and its parent corporation vowed to collaborate closely with official investigations regarding the proceedings, aiming to resolve the matter at the earliest. They further expressed a resolve to augment their AML and CTF mechanisms.
Details around the exact nature of the alleged contraventions by SkyCity remain undisclosed at this time. Nevertheless, SkyCity revealed that they have voluntarily reported several of these incidents to the respective departments.
SkyCity Battles to Streamline Its AML Protocols
As part of its efforts in 2021, SkyCity had initiated an AML and CTF augmentation programme designed to address its persistent shortcomings. Driven to overcome these issues, the enterprise invested substantially in technology and personnel, aiming to upgrade its operational practices.
Despite these efforts, the company continues to grapple with challenges.
In a major development in September 2023, SkyCity disclosed that it confronted risks of a license suspension spanning 10 days or potentially more. This looming threat originated from an application proposed by the Secretary of the Department of Internal Affairs, concerning a case from February the previous year.
The association of that case with SkyCity’s current legal quandary remains obscured, however.
Prior to this, in August, the firm had also earmarked $29.2 million in anticipation of a prospective AML and CTF penalty in the backdrop of AUSTRAC proceedings in Australia. The financial watchdog alleged the firm’s complicity in enabling 59 dubious clients to launder multi-billion Australian dollars at its Adelaide establishment.
