Australian regulator investigates Western Union over money laundering controls
WU•AUSTRAC opens investigation into Western Union
Sept. 1 (Reuters) - Australia's financial crime watchdog said on Tuesday it had launched an investigation into The Western Union Company and its Australian unit over concerns about management of high-risk payment channels, customers and affiliates.
Here are some details:
- The Australian Transaction Reports and Analysis Centre (AUSTRAC) said it was investigating Western Union Financial Services Australia and its parent, and that the money remitter's affiliates were not part of the investigation.
- The investigation was launched as AUSTRAC has "serious concerns" that Western Union has failed to adequately manage risks associated with criminal exploitation, said AUSTRAC CEO Brendan Thomas.
- Western Union operates one of the world's largest international payment services.
- The investigation will focus on Western Union's anti-money laundering and counter terrorism financing (AML/CTF) programme, including whether its systems can effectively identify, assess and mitigate money laundering and terrorism financing risks.
- The regulator will also assess whether the company's transaction monitoring can detect known money laundering patterns, especially those linked to child exploitation and terrorism financing.
- Western Union's governance framework, including the role of its global headquarters in overseeing the Australian unit's compliance with AML/CTF rules, will be investigated, AUSTRAC said.
- "Western Union takes the AUSTRAC investigation seriously. We will continue to cooperate fully with AUSTRAC and engage constructively throughout the regulatory process," a Western Union spokesperson told Reuters in an email.
- In July 2025, the regulator ordered an external audit of Western Union's local unit over concerns about its compliance with the AML/CTF rules.
- AUSTRAC's 2025 supervisory campaign into payment providers identified significant weaknesses in how some businesses detected and managed transactions linked to child sexual exploitation.
