SkyCity Agrees NZ$4.16m Non-Compliance Settlement with NZ DIA

SkyCity has settled with New Zealand's Department of Internal Affairs by agreeing to pay NZ$4.16 million because it did not follow the rules.

SkyCity has paid NZ$4.16 million to settle a case because they did not follow New Zealand's money laundering and terrorism finance laws, according to the country’s Department of Internal Affairs. This payment was made to avoid going to court over these claims.

Key Details of the Settlement

• SkyCity admits to breach of obligations under Anti-Money Laundering regulations.
• Violations occurred between February 2018 and March 2023.
• No evidence of direct involvement in money laundering or terrorism financing.
• The DIA and SkyCity jointly suggest a penalty of NZ$4.16m to the high court.

SkyCity didn't do a good job checking and tracking their customers' behavior, knowing who their customers are, and stopping relationships with them when they should have. Instead of taking this to court, they will have a hearing to decide on the fine.

SkyCity's approach to addressing regulatory problems.

SkyCity has been working on making their rules and checks better since the end of 2021. They are putting more money into new tech and checking their ways of doing things to find places they can do better.

• Refreshed the SkyCity board with new directors who are experts in risk management.
• Established a dedicated risk and compliance committee.
• Boosted internal and external audit scrutiny.

SkyCity is being more careful by doing better background checks and has made their financial monitoring and safety teams bigger. They are working on making their casinos better by requiring all players in their New Zealand locations to use a member card to play games by the middle of 2025.

Changes in Leadership and Company Reorganization

SkyCity has made changes to its management team to make sure they follow rules better.

• Jason Walbridge taking charge as the new CEO starting in July.
• Julie Amey's resignation as chief financial officer, remaining in position for another six months.
• Appointment of Andrew McPherson as chief information officer, having served on an interim basis since November.

Wider Implications

This is not the only time this has happened; a casino in Australia, called SkyCity, also had to pay AU$67.0 million because it didn't follow the rules to prevent illegal money activities and terrorism funding. These cases show how important it is for casinos to follow these anti-illegal money rules.

Work in Progress

SkyCity has worked hard to improve its systems for preventing money laundering and terrorism financing. Julian Cook, the executive chair, was unhappy about the past problems but promised that they are focused on making all the required improvements to follow the rules properly.

SkyCity is actively recognizing and tackling financial crimes. They are dedicated to doing this work openly and with great care. The company is cooperating with the DIA to keep following rules and to keep their business honest.