AUSTRAC pings MoneyGram over unregistered remitters

One of the world's largest remittance network providers, MoneyGram Payment Systems, has been fined A$122,400 for contraventions of Australia's anti-money laundering and counter-terrorism financing laws.

According to a statement from the anti-money laundering and counter-terrorism financing regulator, the fine is a consequence of an AUSTRAC compliance assessment in 2014, where MoneyGram advised AUSTRAC that it had provided remittance services through six affiliate businesses that were not registered with AUSTRAC. In determining its enforcement approach, AUSTRAC took into account the voluntary disclosure.

All businesses providing remittance services must be registered with AUSTRAC on the Remittance Sector Register. It is an offence to provide remittance services and not be registered.

"The money remittance sector is recognised internationally as being particularly vulnerable to exploitation by criminals," AUSTRAC CEO Paul Jevtovic said:

"We closely supervise Australia's remittance sector to ensure remitters implement the necessary measures to identify, manage and mitigate money laundering and other risks."

A schedule on the AUSTRAC website indicates the six unregistered remitters were fined for a total of 12 offences.

NOTE: This story originally appeared with the headline: "AUSTRAC pings MoneyGram with record fine". The fine of A$122,400 levied was not the largest for this type of offence. AUSTRAC have since confirmed that the largest such penalty remains the $225,600 fine paid in December 2013 by Ria Financial Services Australia for providing remittance services to unregistered affiliates.