Christchurch Casino under scrutiny for AML & CFT failings
New Zealand’s DIA has filed legal proceedings for alleged non-compliance.
Key points:
– Christchurch Casino has fallen under the legal microscope for AML/CFT failings
– The alleged breaches occurred between December 2018 and December 2023
– The Department of Internal Affairs in New Zealand has taken the matter to court
The Department of Internal Affairs (DIA) in New Zealand has officially initiated legal proceedings against Christchurch Casino for purported non-compliance issues, relating to anti-money laundering (AML) and counter financing of terrorism (CFT) failings.
These alleged failures took place across a five-year period spanning from December 2018 to December 2023. More specifically, the case revolves around the failure to develop and implement an adequate AML/CFT compliance structure, failing to monitor accounts, failure to retain accurate records, and a lack of due customer due diligence.
Therefore, despite not being directly involved with any money-laundering activities, the lack of appropriate policies to detect and prevent the possibility of such activities has now landed the casino in hot water.
In September 2022, concerns were also raised by problem gambling safety advocates around Christchurch Casino’s proposed move to launch an online casino. However, the New Zealand Government has now gone on to announce that online gaming is set to be regulated within the nation by 2026.
Good to know: In May, SkyCity was also charged with AML breaches by the NZ DIA, paying a NZ$4.16m ($2.42m) fine
Serge Sablyak, Director of AML/CFT Group, DIA, commented on the latest development, saying: “New Zealand casinos can be exploited by criminals to launder the proceeds of crime and to finance terrorism if robust processes aren’t maintained. Casinos must implement strong measures to prevent this.
“Casinos and other reporting entities that don’t uphold these standards will be held to account by DIA and other supervisors of the AML/CFT system. Though we are unable to provide further comment while the matter is before the High Court, DIA will continue to take firm action against reporting entities that fail to comply with their AML/CFT obligations.”
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