Australia investigates Western Union over money-laundering controls

Australia’s financial crimes agency has opened an investigation into Western Union and its Australian division, focusing on whether the company can control risks in its international payment business.

The Australian Transaction Reports and Analysis Centre said the probe would examine Western Union’s management of a “high-risk” payment channel. Austrac chief executive Brendan Thomas said payment service providers face recognised risks involving terrorism financing, child sexual exploitation and human trafficking.

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Payment service providers are internationally recognised as high-risk for criminal exploitation

“We have serious concerns that Western Union has failed to adequately manage those risks,” Thomas said. The investigation will assess whether the company’s anti-money-laundering and counter-terrorism financing programs can identify and reduce those threats, including known money-laundering methods associated with child sexual exploitation and terrorism financing.

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We have serious concerns that Western Union has failed to adequately manage those risks.

The inquiry follows an external audit ordered by Austrac in 2025, as well as earlier regulatory engagements. Austrac said Western Union had committed to addressing issues identified in the audit.

The case adds to a series of major enforcement actions by the agency. Westpac Banking paid A$1.3 billion in 2020, Commonwealth Bank paid A$700 million in 2018, and Crown Resorts received a A$450 million penalty in 2023. Star Entertainment Group also faces a substantial penalty.

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Seriously

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”.

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Will continue to cooperate fully with Austrac and engage constructively throughout the regulatory process