The business stands to pay a penalty of A$67 million in Australia and NZ$4.16 million in New Zealand.
The legal action relates to risk and compliance failures at SkyCity Adelaide and SkyCity properties in New Zealand, although SkyCity has flagged that much of what was at issue in New Zealand “relate[s] to largely, although not exclusively, historical matters”.
In Australia the case was brought to court by AUSTRAC, the financial crimes watchdog. In New Zealand it was the nation’s Department of Internal Affairs (DIA).
“SkyCity has been subject to regulatory enforcement action in both Australia and New Zealand and those regulators are rightly holding SkyCity to account,” said SkyCity’s executive chair, Julian Cook.
“We are pleased to have reached agreement with AUSTRAC, noting that the agreement remains subject to consideration and approval by the Federal Court,” he said.
“This is a significant step in resolving the proceedings.
“We acknowledge that, as a casino operator, we play a key role in combatting money laundering and terrorism financing and safeguarding the community against these risks. While we take this responsibility seriously, we accept we have failed to live up to the standard required of us and for this, on behalf of the SkyCity and SkyCity Adelaide Boards and management teams, I apologise.
“We know we need to do better to meet the expectations of our regulators, customers and our shareholders, and this is a process that is already underway.”
Cook also offered an apology for SkyCity’s failings in New Zealand.
“Over the past few years, considerable progress has been made towards upgrading our anti-money laundering and countering terrorism financing systems,” he said.
“Our enhancement activities remain ongoing and we have further important work to do in New Zealand and Australia which will take time to complete. We have commenced a comprehensive multi-year transformation programme to strengthen how we manage risk across the SkyCity Group.”
SkyCity operates – and will operate – considerable hotel inventory and event space across its portfolio. In Adelaide it has hotel Eos by SkyCity, including an events floor, and in Auckland it has recently opened the 303-room Horizon Hotel and is set to open and operate the New Zealand International Convention Centre (NZICC) in 2025. SkyCity also has properties in Queenstown and Hamilton.
