close menu

AUSTRAC issues largest fine yet

by 1st Contact | Jun 15, 2015
  • Due to “systematic contraventions of Australia’s anti-money laundering and counter terrorism financing laws”, the Australian Transaction Reports and Analysis Centre (AUSTRAC) has issued a £167,389 fine – its largest to date.
  • Immigration

    MoneyGram Payment Systems, one of the world’s biggest remittance network providers, was alleged to have made 33 unspecified contraventions. It has paid a record AUD 336,600 (£167,389) infringement notice for providing services through remittance businesses that weren’t registered.

    This is not, however, the first time that MoneyGram has had to pay a fine for a contravention under the Anti-Money Laundering and Counter Terrorism Financing Act (AML/CTF).

    In January 2015 it paid a AUD 122,400 penalty after informing AUSTRAC that it had provided remittance services through six unregistered partner businesses.

    The multibillion dollar global remittance industry is infamous for being at high risk of money laundering and terrorist activity.

    As a result, countries with large numbers of remittance operations, such as Australia, are enforcing stricter licensing requirements in a number of jurisdictions.

    You can view the official report here.

    This move highlights the need for people and their businesses to make sure they are using a registered and fully regulated remittance service provider.

    Within the UK this means that the provider should be registered with HM Revenue & Customs as well as with the Financial Conduct Authority. In Australia the remittance provider should hold an Australian Financial Services Licence (issued by ASIC) in order to deal in foreign exchange.

    In South Africa it should hold an FSB licence and in the USA it means being registered as a Money Services Business with FinCEN.

    The number of clients a provider handles, as well as the number of years they have been in business, are also good indicators. However, you should always do a background check to make sure they have not incurred any penalties.

    If you have any further questions regarding foreign exchange, or are looking for a reliable provider, please contact 1st Contact Forex at money@1stcontact.com.

    • big-ben-london
      Start your life in the UK the stress-free way
      Aug 21, 2017  |  by Leanne Shrosbree
    • woman-alarm-clock-scream
      Applying for an emergency UK visa in South Africa
      Aug 17, 2017  |  by John Dunn
    • Three friends having breakfast
      Roommates, budget and location: Your guide to finding accommodation in the UK
      Aug 11, 2017  |  by Leanne Shrosbree
    • Group of friends having drinks
      5 ways to meet new people in London
      Aug 07, 2017  |  by Leanne Shrosbree
    • SA and UK flag
      How many South Africans were granted British citizenship last year?
      Aug 03, 2017  |  by 1st Contact
    • Puppy
      No pet left behind: Bring your furry friends with you to the UK
      Jul 28, 2017  |  by Leanne Shrosbree
    • Stoketoberfest
      Stoketoberfest is upon us
      Jul 28, 2017  |  by 1st Contact
    • heart calculator desk cash
      Stay on the right side of HMRC as a contractor
      Jul 24, 2017  |  by Kobus Van den Bergh
    • choosing worker
      How to get a job after you’ve arrived in the UK
      Jul 21, 2017  |  by Leanne Shrosbree
    • happy young couple
      Don’t do the long distance thing, extend your UK spouse visa
      Jul 20, 2017  |  by John Dunn
     
     

    Do you like cookies? We do, read why.