Western Union probed in Australia over laundering controls
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The probe will focus on Western Union’s management of “high-risk” payment channel.
PHOTO: ADOBE STOCK
SYDNEY – Western Union and its Australian division are being investigated by the country’s financial crimes agency over concerns whether its anti-money laundering and terrorism financing controls are effective.
The probe will focus on Western Union’s management of “high-risk” payment channel, the Australian Transaction Reports and Analysis Centre said in a statement on Sept 1.
Western Union is one of the world’s biggest international payment service providers, allowing customers to move money around the world.
“Payment service providers are internationally recognised as high-risk for criminal exploitation”, including terrorism financing, child sexual exploitation and human trafficking, Austrac chief executive Brendan Thomas said in the statement. “We have serious concerns that Western Union has failed to adequately manage those risks.”
Austrac has had several high-profile victories against Australian companies for lax money laundering and terrorism financing controls.
Westpac Banking was fined a record A$1.3 billion in 2020 to settle Australia’s biggest breach of anti-money laundering laws.
Commonwealth Bank of Australia paid a A$700 million penalty in 2018 after admitting to more than 53,000 breaches that allowed drug syndicates to funnel millions of dollars overseas.
Blackstone-controlled casino operator Crown Resorts was fined A$450 million (S$410.5 million) in 2023 for its breaches, while rival Star Entertainment Group is facing a hefty penalty.
The Western Union investigation comes after an external audit that Austrac ordered in 2025, and previous regulatory engagements.
It will look at whether the company’s anti-money laundering and counter-terrorism financing programs effectively enables it to identify and mitigate risks, and whether it can identify known money laundering typologies, particularly those associated with child sexual exploitation and terrorism financing.
A spokesperson for Western Union said the company is taking the investigation “seriously” and “will continue to cooperate fully with Austrac and engage constructively throughout the regulatory process”.
Austrac said that Western Union has committed to addressing issues raised in the audit. BLOOMBERG
