AUSTRAC is investigating whether Western Union does enough to manage money laundering and terrorism financing risks.
The probe covers Western Union Financial Services Australia and The Western Union Company.
It does not extend to the company’s affiliates.
Australia’s financial crime regulator will review the company’s anti-money laundering and counter-terrorism financing programme, transaction monitoring systems and governance arrangements.
It will assess how Western Union manages risks involving its payment channels, customers and affiliate relationships.
AUSTRAC will also examine whether its systems can identify known money laundering methods linked to child sexual exploitation and terrorism financing.
The review will include the role of Western Union’s global headquarters in decisions affecting the Australian business and its compliance obligations.
International payment providers operating in Australia must maintain programmes to identify and mitigate money laundering and terrorism financing risks.
They must also report suspicious activity to AUSTRAC.
AUSTRAC CEO Brendan Thomas said,
“Western Union provides important services to customers in Australia and around the world who need to move money across borders, including via cash payments. Payment service providers are internationally recognised as high-risk for criminal exploitation.
We have launched this investigation because we have serious concerns that Western Union has failed to adequately manage those risks.”
AUSTRAC opened the probe after considering its intelligence, previous regulatory engagements and findings from an external audit ordered in 2025.
A broader supervisory campaign that year found significant weaknesses in how some payment providers detected and managed transactions linked to child sexual exploitation.
The regulator has also identified terrorism financing, human trafficking and fraud among the threats facing the sector.
AUSTRAC noted that Western Union had committed to addressing the issues raised in the audit.
The regulator will determine whether further action is warranted once the investigation is complete.
Featured image: Edited by Fintech News Australia, based on image by dit26978 via Magnific
