Christchurch Casino has agreed to the High Court to pay a $5.06m penalty, as recommended by the Department of Internal Affairs, over compliance issues.
In December 2024, Christchurch Casino was sued by the Department of Internal Affairs (DIA) for allegedly not fulfilling its legal compliance requirements under the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act.
“These include the obligations to establish, implement, and maintain a robust AML/CFT compliance programme; to conduct enhanced customer due diligence and terminate business relationships when required; to monitor accounts; and to keep records as required by the Act,” the DIA said.
The violation is said to have occurred between December 2018 and December 2023.
The casino was not accused of being directly involved in money laundering or the financing of terrorism. “However, under the AML/CFT Act, all New Zealand reporting entities (including casinos) are required to have adequate policies, procedures, and controls to detect and manage and mitigate the risk of money laundering and financing of terrorism,” the DIA stated.
As part of the settlement, the casino has agreed to pay the $5.06m penalty. It also acknowledged seven causes of action outlined in the department’s amended statement of claim.
Serge Sablyak, director of the Anti-Money Laundering and Countering Financing of Terrorism group at Internal Affairs, described the agreement as having a “significant and positive outcome.”
“While the regulatory breaches were serious, we acknowledge Christchurch Casino’s decision to admit to the breaches and take responsibility for what were substantial failings.”
“We’re proud that our work has strengthened the integrity of New Zealand’s financial system and has helped build public confidence in the prevention of money laundering and terrorism financing,” Sablyak said.
Christchurch Casino chief executive Brett Anderson expressed his apologies for “substantial anti-money laundering failings.”
“Christchurch Casino was not directly involved in money laundering or the financing of terrorism, but we failed where we should have succeeded in meeting our responsibilities under the Anti-Money Laundering and Countering Financing of Terrorism Act.”
“We have a remediation plan in place to ensure our policies, processes, and controls are robust,” Anderson said.
“This plan is under way and will make certain we meet our regulatory requirements and live up to the trust that is placed in us by our community.
“We are committed to getting this right, not just for today but also for the future, and look forward to working with the DIA to ensure that we do.”