A settlement has been reached in the Department of Internal Affairs’ civil proceedings against Christchurch Casinos Limited for alleged breaches of its obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.
However, Department of Internal Affairs noted that Christchurch Casino is not alleged to have been directly involved in money laundering or the financing of terrorism.
DIA found that Christchurch Casino failed to establish, implement and maintain a compliant AML/CFT compliance programme, adequately monitor accounts, conduct compliant enhanced customer due diligence, terminate existing business relationships when required, and keep records as required by the Ac, from between December 2018 and December 2023.
As part of the settlement, Christchurch Casino has admitted all seven causes of action in DIA’s amended statement of claim and has agreed to join DIA in recommending that the High Court impose a penalty of $5.06 million on Christchurch Casino.
Between May 2023 and September 2024, DIA conducted an investigation into Christchurch Casino’s AML/CFT compliance and found that it had breached a number of its obligations under the Act.
“This agreement is a significant and positive outcome. It’s encouraging to achieve our intended result without the time and expense of court proceedings,” said Serge Sablyak, Director, AML/CFT Group.
“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.”
DIA and Christchurch Casino have recommended to the High Court that the matter now proceed to a penalty hearing for the Court to determine the appropriate penalty to be imposed on Christchurch Casino.
Brett Anderson, Chief Executive of Christchurch Casino, said, “Christchurch Casino accepts responsibility for its substantial AML failings, and on behalf of the Board and Management I apologise to our stakeholders and the community for Christchurch Casino being in this position. We are aware of our obligations and take our responsibility to combat money laundering and terrorism financing seriously.
“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. This plan is underway 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.”
