Australian regulator launches Western Union probe over high-risk payment concerns

Sept. 1 (Reuters) - Australia's financial crime watchdog said on Tuesday it has launched an investigation into The Western Union Company and its Australian unit over concerns about the company's 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 Pty Ltd 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 CEO Brendan Thomas.
• AUSTRAC's investigation will focus on Western Union's anti-money laundering and counter-terrorism financing (AML/CTF) program, 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 added.
• Western Union, which operates one of the world's largest international payment service providers, did not immediately respond to Reuters' request for comment.
• In July 2025, the regulator ordered an external audit of Western Union's local unit, on concerns over 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.
• AUSTRAC said it would decide whether to take any action after completing its investigation, and noted that Western Union has committed to addressing issues identified in the audit report.