A settlement has been reached in civil proceedings against Christchurch Casinos Limited.
In December 2024, 1News reported the casino faced legal action over alleged compliance issues with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.
As part of the settlement announced today, the casino has agreed to the High Court imposing a $5.06m penalty, as recommended by the Department of Internal Affairs.
The casino also admitted seven causes of action in the department’s amended state of claim, which stretched from December 2018 and December 2023.
In a statement, the department said Christchurch Casino had failed to establish, implement and maintain a programme compliant with the Act, adequately monitor accounts, conduct complaint-enhanced customer due diligence, terminate existing business relationships when required, and keep records as required by the Act.
Christchurch Casino was not alleged to have been directly involved in money laundering or the financing of terrorism.
Internal Affairs’ director of the Anti-Money Laundering and Countering Financing of Terrorism group, Serge Sablyak, said the agreement was a “significant and positive outcome”.
“It’s encouraging to achieve our intended result without the time and expense of court proceedings,” Sablyak said.
“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.”
The Department of Internal Affairs and the casino recommended the High Court proceed to a penalty hearing, to determine the appropriate penalty to be imposed.
