SkyCity faces penalty for anti-money laundering non-compliance

SkyCity has announced that the New Zealand Department of Internal Affairs intends to initiate civil penalty proceedings against its subsidiary, SkyCity Casino Management.

The Department's action is in response to SCML's non-compliance with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.

Draft pleadings have been provided to SkyCity, outlining five separate causes of action, which primarily relate to historical compliance issues.

If the Department's claim is accepted, SCML could face a civil penalty imposed by the High Court.

SkyCity and SCML have expressed disappointment and stated their intention to engage constructively with the Department.

The company has assessed its maximum liability in relation to these claims to be $8 million.