New Zealand-based operator SkyCity Entertainment has agreed to pay a total of US$47.5 million in fines to regulators in Australia and New Zealand for widespread anti-money laundering and counter-terrorism funding (AML/CTF) failures in both countries.
The bulk of the fines came from Australia, where the company May 17 agreed to a US$45 million settlement with the financial crime agency AUSTRAC. That settlement is subject to approval from the country’s Federal Court at a hearing June 7.
Per AUSTRAC, the company violated the Australian AML/CTF Act and Rules numerous times from December 2016-December 2022 at its SkyCity Adelaide property. The agency first appointed an investigator to review these issues in July 2021, and an internal AML/CTF enhancement program began in November of that year.
In a statement, SkyCity Executive Chair Julian Cook said the company is “pleased to have reached agreement with AUSTRAC,” and that the move is “a significant step in resolving the proceedings.”
“We are determined to continually lift our AML/CTF practices, comply with our obligations and uphold our customer, community and regulatory expectations,” he continued. “We remain committed to ensuring that we provide safe and responsible experiences and environments for our people and customers, and will continue to engage cooperatively and constructively with our regulators.”
Then on May 21, SkyCity announced it had reached a similar AML/CTF settlement with the New Zealand Department of Internal Affairs (DIA). Both sides agreed to recommend a penalty of US$2.54 million, which will be considered by the High Court of New Zealand.
Per the agreement, the company admitted to breaching the New Zealand Anti-Money Laundering and Countering Financing of Terrorism Act 2009 numerous times from February 2018-March 2023. The DIA commenced civil proceedings against SkyCity in February 2024.
Cook said in a statement that “considerable progress has been made towards upgrading our anti-money laundering and countering terrorism financing (AML/CFT) systems,” but that “does not lessen the seriousness with which we take these breaches.”
In addition to revamping its AML/CTF systems, SkyCity has also committed to implementing carded play across all of its New Zealand machines by mid-2025, which has been a major initiative for operators in Australia.
The company has also had several executive-level changes in the last year. Former CEO Michael Ahearne was replaced by Jason Walbridge in April, and current CFO Julie Amey is slated to step down by the end of September. In March, Andrew McPherson was cemented as permanent chief information officer after serving on an interim basis since last year.
