By PAUL O’DONOGHUE, Senior Correspondent
WESTERN Union faces an investigation from AUSTRAC, Australia’s financial crimes agency, over concerns about the effectiveness of its anti-money laundering and terrorism financing controls.
AUSTRAC said on that the probe will examine how Western Union manages “high-risk” payment channels.
Western Union provides important services to customers in Australia and around the world who need to move money across borders, including via cash payments,” AUSTRAC CEO Brendan Thomas said.
“Payment service providers are internationally recognised as high-risk for criminal exploitation. We have launched this investigation because we have serious concerns that Western Union has failed to adequately manage those risks.”
Western Union is one of the world’s biggest international payment service providers, allowing customers to move money around the world.
A Western Union spokesperson said the company is taking the investigation “seriously” and “will continue to cooperate fully with Austrac and engage constructively throughout the regulatory process”.
Western Union anti-money laundering probe
AUSTRAC said the investigation will focus on Western Union’s:
- AML/CTF program. Including whether it effectively enables the company to identify, assess and mitigate money laundering and terrorism financing risks
- transaction monitoring program. Including whether it can identify known money laundering typologies, particularly those associated with child sexual exploitation and terrorism financing
- governance arrangements. These will include the role of its global head office in decisions affecting the Australian entity’s compliance with its AML/CTF obligations.
The investigation follows an external audit that AUSTRAC ordered in 2025, as well as previous regulatory engagements with Western Union.
AUSTRAC has previously taken action against several high-profile Australian companies over inadequate 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.
AUSTRAC said Western Union has committed to addressing the issues raised in the audit.
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