SkyCity says the Department of Internal Affairs is poised to file civil penalty proceedings against its casino in the High Court.
It is for alleged non-compliance with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 by SkyCity Casino Management Limited (SCML).
SCML is a subsidiary of SkyCity and holds its casino operator's licence for operations in Auckland, Hamilton and Queenstown.
SkyCity, in a statement, said it was disappointed it had "not met the standard to which it needs to hold itself, and this has resulted in the action taken by the Department".
As 1News' Katie Bradford reports, the Department of Internal Affairs has launched High Court action against the casino's subsidiaries over allegations it failed to meet anti-money laundering requirements. (Source: 1News)
It will work with DIA "with a view to resolving these matters expeditiously".
SkyCity said draft pleadings had been provided to SkyCity setting out five separate causes of action.
"Those causes of action allege significant compliance issues in relation to the Act. These are largely, although not exclusively, historical matters. Some matters relate to incidents of non-compliance which have previously been self-reported to the Department.
"Since late 2021, SkyCity has had in place a significant AML/CFT enhancement programme to address compliance systems and correct historical shortcomings. This has involved, and continues to involve, significant investment in people and technology, and various reviews of SkyCity’s processes and systems to identify areas which require improvement."
SkyCity said it and DIA had assessed the maximum liability in relation to the claims as being $8m in aggregate.
"The Department has recently completed a review of SkyCity’s compliance with the AML/CFT Act," said Mike Stone, Director AML/CFT Group, Regulatory Services Department of Internal Affairs
"This matter is going through due process and the Department will release a media statement when it is in a position to do so. We are unable to make further comment at this time."
In September last year, the DIA applied to the Gambling Commission to suspend the company's Auckland casino licence for 10 days for host responsibility failures. There has not been a ruling on that yet.
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