Christchurch Casino Fines Over Compliance Issues
Christchurch Casino Reaches $5.06 Million Settlement Over AML/CFT Compliance Failures
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Christchurch Casino Limited has reached a settlement in civil proceedings concerning alleged breaches of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act). The agreement, announced following legal action initiated in December 2024, includes a $5.06 million penalty recommended by the Department of Internal Affairs.
Key Admissions and Penalties
As part of the settlement,christchurch Casino admitted to seven causes of action detailed in the Department of Internal Affairs’ amended statement of claim. these breaches spanned from December 2018 to December 2023. The casino acknowledged failures in establishing and implementing a compliant AML/CFT program, adequately monitoring accounts, conducting enhanced customer due diligence, terminating business relationships when necessary, and maintaining required records.
It is indeed critically important to note that Christchurch Casino was not alleged to have been directly involved in money laundering or the financing of terrorism.
Department of Internal Affairs statement
Serge Sablyak, Director of the Anti-Money Laundering and Countering Financing of Terrorism group at the Department of Internal Affairs, described the agreement as a “significant and positive outcome.” He expressed encouragement at achieving the department’s intended results without the protracted time and expense of court proceedings.
“While the regulatory breaches were serious, we acknowledge Christchurch Casino’s decision to admit to the breaches and take duty for what were ample failings,” sablyak stated. He further emphasized the department’s pride in its work strengthening the integrity of New Zealand’s financial system and building public confidence in the prevention of money laundering and terrorism financing.
Path to Resolution
The Department of internal Affairs and Christchurch Casino jointly recommended that the High Court proceed to a penalty hearing to determine the final appropriate penalty. This settlement signifies a commitment from the casino to address its compliance shortcomings and reinforces the Department of Internal Affairs’ dedication to upholding the integrity of New Zealand’s financial regulations. The outcome underscores the importance of robust AML/CFT frameworks for all businesses operating within the financial sector.