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Largest fine in AUSTRAC's history

AUSTRAC has issued a record fine to one of the world’s largest remittance network providers for systemic contraventions of Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws. 

MoneyGram Payment Systems, Inc. has paid a $336,600 infringement notice for providing money remittance services through unregistered remittance businesses. 

This follows a fine to MoneyGram of $122,400 in January 2015 for the same type of contraventions, bringing the total to almost half a million dollars.

Both infringement notices arose from an AUSTRAC compliance assessment in 2014. 

AUSTRAC CEO Paul Jevtovic noted 'The money remittance sector is recognised internationally as being particularly vulnerable to exploitation by criminals.

'Businesses with systemic vulnerabilities, or repeated AML/CTF non-compliance, risk 

  • exploitation by criminals 
  • severe regulatory action from AUSTRAC and 
  • serious reputational damage.'

This is the fourth infringement notice issued by AUSTRAC for contraventions of the AML/CTF Act. 

Ria Financial Services Australia paid a $225,600 infringement notice for similar contraventions in 2013 and ClassicBet Pty Ltd paid $10,200 for failure to apply to enrol within the required timeframe.

Attribution:  AUSTRAC CEO Paul Jevtovic APM

Available for interview:  AUSTRAC CEO, Paul Jevtovic APM.  

Please contact AUSTRAC Communications:

The infringement notice is available on the AUSTRAC website.

Last modified: 20/05/2015 17:25