AUSTRAC orders external audit of Western Union Financial Services
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The news: Financial crime watchdog AUSTRAC has ordered the appointment of an external auditor to Western Union Financial Services after raising concerns about the money remitter’s compliance with anti-money laundering and counter-terrorism financing (AML/CTF) laws.
The context: AUSTRAC said the concerns include core anti-money laundering issues such as poor customer due diligence, delayed or non-reporting of suspicious matters, and concerns about whether Western Union’s AML/CTF program is functional.
The auditor will provide a report to AUSTRAC with information that will help Western Union better meet its compliance obligations and inform whether further regulatory action is required.
AUSTRAC said Western Union has self-disclosed issues with its systems and committed to remedial action, but the agency is still not satisfied that it is meeting its its AML/CTF obligations.
What they said: “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,” said AUSTRAC chief executive Brendan Thomas.
“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.”
The source: AUSTRAC media release
