The financial crimes watchdog Austrac has launched an investigation into Western Union over concerns about its management of money laundering risks, including monitoring of transactions that could be linked to child exploitation or terrorism financing.
Austrac said this morning it was investigating the Western Union Company, an international payment giant, and the firm’s Australian arm, citing “serious concerns” it was not properly managing the risks of its systems being used by criminals.
“Western Union provides important services to customers in Australia and around the world who need to move money across borders, including via cash payments,” Austrac chief executive Brendan Thomas said.
“Payment service providers are internationally recognised as high-risk for criminal exploitation. We have launched this investigation because we have serious concerns that Western Union has failed to adequately manage those risks.”
Austrac enforces the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act, which puts strict obligations on companies including banks, casinos and money transfer firms.
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