Internal Affairs Photo: RNZ / Alexander Robertson
The Department of Internal Affairs (DIA), has taken High Court action against the Christchurch Casino for alleged non-compliance with anti money laundering and terrorism financing laws.
It said the Casino was not alleged to be directly involved in money laundering or financing terrorism, but failed to meet its obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act.
The alleged failures occurred between December 2018 and December 2023.
Director of the DIA's Anti-Money Laundering and Countering Financing of Terrorism group Serge Sablyak said reporting entities, which includes casinos, law firms, accounting practices, and real estate agents, are required to have "adequate policies, procedures and controls to detect, and manage and mitigate the risk of, money laundering and financing of terrorism."
New Zealand casinos can be exploited by criminals to launder the proceeds of crime and finance terrorism if robust processes aren't maintained, he said.
These include obligations to create, implement and maintain a robust compliance programme, conduct enhanced customer due diligence and terminate business relationships when required, monitor accounts, and keep records as required by the Act.
"Casinos and other reporting entities that don't uphold these standards will be held to account by DIA and other supervisors of the AML/CFT system."
The DIA was unable to provide further comment while the matter is before the High Court, but would continue to take "firm action" against reporting entities that fail to comply with their AML/CFT obligations, Sablyak said.
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