Cash Converters has given an enforceable undertaking to AUSTRAC after an investigation found shortcomings in the company’s compliance with anti-money laundering and counter terrorism laws. The AML regulator yesterday revealed some of the findings of a two-and-a-half year investigation, which found the company had “not properly implemented” its compliance program. AUSTRAC’s acting chief executive Peter Soros said the enforceable undertaking was designed to ensure Cash Converters’ AML compliance was fit for purpose. “Cash Converters has demonstrated a commitment to maturing its AML/CTF compliance arrangements, cooperating with AUSTRAC throughout the course of our regulatory enquiries,” Soros said. "To date, Cash Converters has undertaken work to rectify shortcomings in its AML/CTF program.  “AUSTRAC will continue to work with Cash Converters to ensure it is compliant, both now and into the future.” The enforceable undertaking requires the company to complete a remediation acquittal report by 28 April and to appoint an external auditor by the end of June to appraise the effectiveness of its compliance program. Cash Converters has committed to furnishing a copy of the auditor’s final report to the regulator by the end of November. The company’s managing director Sam Budiselik acknowledged the compliance shortcomings exposed by the AUSTRAC probe. “Cash Converters takes its AML/CTF obligations seriously and over the past two years has undertaken an uplift program to address shortcomings identified during the course of AUSTRAC’s investigation,” he said. “The uplift has resulted in a significant improvement in the company’s AML/CTF compliance obligations, with the enforceable undertaking representing the final stages in that process.” Details of the compliance problems at Cash Converters came as Budiselik also flagged a large write-down of goodwill in the first half accounts due to be released next week. The company will report a one-off impairment charge of up to A$110 million following the passage in December of the federal government’s financial services reform bill. The new reforms are expected to reduce the number of consumers eligible to apply for small amount credit contracts, otherwise known as payday loans. Cash Converters’ first half accounts are expected to be released on 27 February.