The anti-money laundering regulator Austrac has cancelled the registration of remittance company Fast Exchange, saying that registration of the company involved a significant risk of money laundering, terrorism financing or people smuggling.Austrac said Fast Exchange breached the Anti-Money Laundering and Counter-Terrorism Financing Act by not having suitable procedures in place to manage its money laundering and terrorism financing risks.It did not have systems to train staff, conduct due diligence on staff, conduct "know your customer" checks on customers, monitor customer transactions or meet its reporting obligation to Austrac.It also failed to advise Austrac of "material changes to its registration".Austrac has been active in policing the remittance industry. It has cancelled or refused the registration of five businesses and imposed conditions on the registration of another 15. Remittance dealers, who often operate outside the formal banking system, are considered within the AML/CTF regulatory community to be particularly vulnerable to money laundering.They are the only AML/CTF reporting entities that must register with Austrac. An amendment to the Act in 2011 tightened the registration requirements. Remittance dealers must reapply for registration every three years. Businesses seeking registration have to demonstrate their suitability. Austrac was given the power to refuse, suspend or cancel a registration, or impose conditions on a dealer, and its review and enforcement powers were upgraded.According to the explanatory memorandum that accompanied the 2011 amendment: "Australian law enforcement authorities are aware that some international cash transfer services provided by remittance dealers are used by individuals in Australia to pay the organisers of people smuggling ventures."