SkyCity has reached an agreement with the Department of Internal Affairs (DIA) for breaching its Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) obligations.
The DIA brought charges after an audit of SkyCity's practices found breaches between February 2018 and March 2023.
In a settlement agreement announced on Tuesday morning, SkyCity has admitted to all five "causes of action" made in DIA's initial claim.
SkyCity has agreed to pay a penalty, which will ultimately be decided by the court.
Both parties agreed to a penalty of $4.16m, which will be rubber-stamped if the Auckland High Court is satisfied.
The DIA stressed there was no evidence to suggest SkyCity was directly involved in money laundering or the financing of terrorism.
"This agreement is an impactful outcome," DIA's Mike Stone said. "We have received the desired result without the extended duration and cost of court proceedings.
"While we consider these regulatory breaches to be serious, we are pleased that SkyCity was able to admit the breaches and acknowledged responsibility for what were significant failings."
SkyCity executive chair Julian Cook has apologised for the infringement.
"Over the past few years, considerable progress has been made towards upgrading our anti-money laundering and countering terrorism financing systems," Cook said.
"This does not lessen the seriousness with which we take these breaches and we are disappointed that SkyCity is in this position."
