New Zealand's Christchurch Casinos Faces Action over AML Failings
The New Zealand Department of Internal Affairs (DIA) has initiated civil proceedings in the High Court against Christchurch Casinos Limited for alleged violations of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act). The proceedings aim to address the casino's purported non-compliance with legal requirements designed to safeguard the integrity of New Zealand's financial system.
The Christchurch Casino in Christchurch, New Zealand, at dusk. (Source: Newzealand.com)
LISTEN TO THIS ARTICLE:According to a DIA press release, the allegations include failures to establish, implement, and maintain an effective AML/CFT compliance program as mandated by the Act. The casino is also accused of not conducting enhanced customer due diligence, failing to terminate business relationships when necessary, inadequately monitoring accounts, and neglecting to maintain records as required.
Related: New Zealand Targeting Unlicensed Online Gaming to Boost Regulated MarketThese breaches are alleged to have taken place between December 2018 and December 2023, representing a significant period of non-compliance.
Christchurch Casinos is not accused of directly participating in money laundering or the financing of terrorism. However, under the AML/CFT Act, all reporting entities, including casinos, are required to have stringent policies, procedures, and controls in place to detect, manage, and mitigate risks associated with financial crimes. The legal framework emphasizes the responsibility of entities to actively prevent exploitation by criminal elements attempting to launder the proceeds of crime or finance terrorism activities.
The Director of the DIA's AML/CFT Group, Serge Sablyak, highlighted the risks posed by inadequate compliance measures. He stated that New Zealand casinos are particularly vulnerable to exploitation by criminals seeking to launder illicit funds or finance terrorism.
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Sablyak emphasized the necessity for casinos to implement robust processes to address these risks effectively. He also underscored the DIA's commitment to holding non-compliant entities accountable to protect the financial system.
The DIA has made it clear that it will not hesitate to act against reporting entities that fail to uphold the obligations outlined in the AML/CFT Act. While specific details about the case against Christchurch Casinos remain undisclosed due to the ongoing legal proceedings, the department affirmed its dedication to enforcing compliance through firm action. Such measures are deemed essential for maintaining the integrity of the financial system and preventing financial crime.
The case against Christchurch Casinos reflects the broader responsibility of all New Zealand reporting entities to adhere to AML/CFT regulations. The legal requirements aim to ensure that entities are not only aware of potential risks but also proactive in implementing preventative measures.
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