SkyCity Group Settles Dispute with DIA
The SkyCity Entertainment Group has announced that it has settled with the Department of Internal Affairs (DIA) after various anti-money laundering (AML) and counter-terrorism financing regulations breaches. The announcement comes after ongoing dispute between the DIA and SkyCity during which the latter was accused of violating the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. In Australia, a similar settlement was announced.
SkyCity emphasised that it has enhanced internal procedures and that it also self-reported different failures. The dispute has been settled at a $4.16 million sanction fee whilst SkyCity will also need to comply with stricter measures. The measures are part of their “enhancement programme” that has been put in place to address both compliance systems and correct historical shortcomings.
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$4.16 Million Sanction Fee
The SkyCity Group has announced that it introduced its anti-money laundering and counter-terrorism financing programme through investments in “highly skilled personnel and state of the art technology” whilst it has also implemented strict internal checks and new systems to identify areas for improvement. The DIA says that it considers these measures as “adequate” and is willing to move ahead and settle with the gambling operator.
The settlement comes after different shortcomings in the period between February 2018 and March 2023, related to risk assessment, account and transaction monitoring, and lacking compliance programmes. SkyCity was also accused of lacking customer due diligence policy. The DIA emphasises that no proof has been found to suggest that SkyCity was directly involved in money laundering. In February, SkyCity warned about a decline in its company earnings, reporting an adjusted EBITDA of $290-$310 million.
Appeal For Penalty Hearing
As a result of the settlement between both parties the next step is to officially recommend a penalty hearing to the high court. Although the final decision remains in hand of the court it is expected that the recommendation will be followed and that the sanction fee will be set at an amount of $4.16 million. Mike Stone, the DIA’s AML/CFT group director says that the agreement between the two parties is a “breakthrough”. The DIA says that the outcome is “reasonable” and avoids ongoing trials and court proceedings. Stone stresses the “seriousness of the breaches” whilst it values that SkyCity admitted their shortcomings. This holds true for the enhanced programme as well which Stone believes that will be effective.
SkyCity’s Penalty in Australia
Earlier this month, the Federal Court in Australia also announced a settlement agreement between SkyCity and the Australian Transaction Reports and Analysis Centre (Austrac). In May, SkyCity Entertainment agreed to pay a civil penalty of NZ $72.21 million (AU$67.0m) for similar failings. In its Adelaide casino venue, different anti-money laundering and counter-terrorism financing protocols were breached leading to in-depth investigations by Austrac. The settlement between the Federal Court and SkyCity was presented for court approval on the 7th of June. In Australia, the sanction fee was set at NZ$ 3.2million.
About SkyCity
The SkyCity Group was established in 1996 and operates both land-based casinos in New Zealand and Australia, as well as an offshore online casino. The land based casinos in New Zealand are found in Auckland, Hamilton, and Queenstown, whilst the Australian casino is located in the city of Adelaide. Visitors to each SkyCity Casino can enjoy a combination of pokies, table games, dining, and entertainment. SkyCity Auckland is the group’s most visited casino and is found in the central business district of Auckland. Found at the base of the Sky Tower, it is the only casino in the city of Auckland. The Auckland casino has more than 1600 gambling machines, 100 tables and special rooms for high rollers.
SkyCity Online Casino
SkyCity Online Casino was launched in 2019 and offers a game portfolio of more than 1,000 casino games ranging from table games to online pokies, bingo and virtual sports. The online casino is operated from Malta where the company holds a licence by the Malta Gaming Authority (MGA). Laws in New Zealand don’t allow casino operators to launch an online casino but don’t prohibit citizens of 18 years and over from playing at offshore online casinos. New players registering at SkyCity Online are welcomed with a welcome pack of a $100 Bonus + 70 Free Spins whilst existing players can count on ongoing promos as well as a loyalty club offering personalised rewards. We recommend checking out our full SkyCity New Zealand review and claim your welcome bonus upon sign-up.
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