Australia’s financial intelligence agency has ordered Western Union Financial Services Australia to appoint an external auditor, citing concerns about the money remitter’s compliance with anti-money laundering and counter-terrorism financing obligations.
AUSTRAC said it had identified core shortcomings including weak customer due diligence, delayed or missing suspicious matter reports, non‑compliant international funds transfer instruction reporting, and doubts over whether Western Union’s AML/CTF program is functioning effectively.
AUSTRAC chief executive Brendan Thomas said businesses facilitating international funds transfers carry heightened money laundering risks. “The remittance sector is particularly vulnerable to criminal exploitation.” Mr Thomas said.
“Western Union has self-disclosed issues with its systems and consistently committed to remedial action however, AUSTRAC is still not satisfied that Western Union is meeting its AML/CTF obligations.
“The recurrence of these issues raises concerns about the effectiveness of Western Union’s AML/CTF program and internal processes, which is why we are taking this action.
“It’s important that all business’s administer their AML/CTF programs properly; if they don’t it has a knock on effect that creates gaps in the financial system’s defences against criminal misuse.
“Unfortunately criminals are always on the lookout for weaknesses and that’s why it is so important to make sure your business has the right defences.”
Under AUSTRAC’s order, an external auditor will conduct an independent review and report back to the regulator, informing both Western Union’s remediation and any decisions on potential enforcement. “AUSTRAC will then assess if further regulatory action is appropriate,” Mr Thomas said.
The move underscores AUSTRAC’s continued scrutiny of high‑risk remittance providers, which have been a focus of enforcement in recent years alongside actions against major casinos and banks over AML/CTF failings. The regulator has powers under the Anti‑Money Laundering and Counter‑Terrorism Financing Act to require independent audits, accept enforceable undertakings, and seek civil penalties through the courts.
“This action should serve as a reminder to the whole remittance sector, whether you are a large multinational operator or a one person business- you are part of the safety net that protects the financial system and the community from serious and organised crime.
“Play your part and lock down your business so that AUSTRAC doesn’t have to come on the scene and take action.”
