The department alleged the casino’s owners, Christchurch Casinos Limited, failed to meet its compliance obligations under the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act between December 2018 and December 2023.

"These include the obligations to establish, implement and maintain a robust AML/CFT compliance programme; to conduct enhanced customer due diligence and terminate business relationships when required; to monitor accounts; and to keep records as required by the Act."

The casino was not alleged to be directly involved in money laundering or financing of terrorism.

"However, under the AML/CFT Act, all New Zealand reporting entities (including casinos) are required to have adequate policies, procedures and controls to detect, and manage and mitigate the risk of, money laundering and financing of terrorism," DIA said.

Serge Sablyak, drector AML/CFT group at the DIA said casinos could be exploited by criminals to launder the proceeds of crime to finance terrorism if "robust processes aren’t maintained". "Casinos must implement strong measures to prevent this.

"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. "Though we are unable to provide further comment while the matter is before the High Court, DIA will continue to take firm action against reporting entities that fail to comply with their AML/CFT obligations."

Brett Anderson, CEO of Christchurch Casino, said the company was aware of the DIA's proceedings and believed it was currently compliant with the legislation.

He said the casino had enhancement programmes concerning compliance with the Act currently in place.

"This has evolved, and continues to involve, significant investment in people and technology, and various reviews of Christchurch Casinos’ processes and systems to identify areas which require improvement and updating," Anderson said.

"Christchurch Casino takes its AML/CFT compliance obligations seriously and intends to engage constructively with the DIA in relation to the proposed legal proceedings, with a view to resolving these matters as quickly as possible.

“As the matter is to be before the High Court, Christchurch Casino is not able to comment further at this time.”