AUSTRAC is urging inactive remittance providers to voluntarily withdraw from its register or risk having their registrations cancelled, in a move aimed at shoring up the integrity of the sector and reducing the risk of misuse by criminals.
The regulator says more than 900 independent remittance businesses are currently registered, but a significant share may no longer be operating. “Inactive businesses are vulnerable to being bought and taken over by criminals who can then use them to process illicit funds,” Mr Thomas said.
“We consider the remittance sector high risk, because of its exposure to cash and the fast, low-cost way funds can be transferred across borders. “We don’t want dormant businesses to maintain AUSTRAC registration, as registration suggests regulatory legitimacy and oversight but does not guarantee compliance. “Dormant registrations can mislead the public and undermine the integrity of AUSTRAC registration. “We’re urging inactive businesses to voluntarily de-register. If businesses don’t step off voluntarily, AUSTRAC will step in and cancel their registration.”
Registration with AUSTRAC is mandatory for businesses offering money transfer services in Australia, and registrants must meet obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act, including keeping ownership and activity details up to date.
Consumers can verify whether a provider is registered by searching AUSTRAC’s remittance sector register. “If a business is not registered, think twice about using its services.”
The crackdown follows a similar blitz on the digital currency exchange register, which saw 22 businesses voluntarily withdraw and a further 100 slated for cancellation. AUSTRAC says it will soon publish a public version of its digital currency exchange register to bolster transparency and consumer confidence.
