New Zealand’s Christchurch Casino Faces Legal Battle Over Alleged AML Law Breaches
Christchurch Casino has come under scrutiny following accusations by New Zealand's Department of Internal Affairs (DIA) of breaching anti-money laundering and countering terrorism financing (AML/CFT) laws over a five-year period.
The DIA filed civil proceedings in the High Court, alleging that between December 2018 and December 2023, the casino failed to maintain adequate systems and controls to meet its obligations under the AML/CFT Act.
According to the DIA, while Christchurch Casino is not accused of directly engaging in money laundering or financing terrorism, the institution allegedly fell short in implementing robust measures required to mitigate such risks.
These measures include maintaining a comprehensive compliance program, conducting enhanced customer due diligence, monitoring accounts, and keeping records as mandated by law.
Casinos in New Zealand can become vulnerable to criminal exploitation if they do not adhere to stringent compliance protocols. It’s vital for casinos to implement strong measures to prevent money laundering and the financing of terrorism.
Serge Sablyak
Christchurch Casino Responds
In response to the allegations, Christchurch Casino issued a statement acknowledging the legal proceedings. The company emphasized its commitment to AML/CFT compliance, stating that it has invested heavily in improving its systems, processes, and technology to address potential gaps.
Christchurch Casino has taken significant steps to enhance its AML/CFT compliance and remains committed to constructive engagement with the DIA to resolve these matters promptly
Christchurch Casino Spokeperson
The casino, owned by Skyline Enterprises, maintains that it is currently compliant with the AML/CFT Act. However, due to the ongoing legal process, the company declined to provide further comments.
Wider Industry Concerns
This case follows similar issues in New Zealand’s gambling industry. In September, SkyCity Entertainment Group faced a $4.16 million fine for breaches of AML/CFT obligations. That investigation revealed compliance failures between September 2022 and December 2023.
With growing scrutiny on the gambling sector, these legal actions serve as a stark reminder of the risks associated with insufficient oversight. For individuals exploring the list of online casinos in NZ, it highlights the importance of choosing operators that adhere to strict regulatory standards.
As this case unfolds, it underscores the critical need for compliance in preventing money laundering and upholding the integrity of New Zealand’s gambling industry.
