RegAlert2026-09-01
Added · Updated
AUSTRAC initiates investigation into Western Union
AUSTRAC has launched an enforcement investigation into Western Union Financial Services Australia Pty Ltd and The Western Union Company due to serious concerns regarding their management of high-risk payment channels, customers, and affiliates. The investigation will focus on Western Union's AML/CTF program, transaction monitoring program (particularly concerning child sexual exploitation and terrorism financing), and governance arrangements, including the global head office's role in Australian compliance. This action follows consideration of data, prior regulatory engagements, and an external audit ordered by AUSTRAC in 2025, with AUSTRAC to determine any subsequent action upon completion of the investigation.
AUSTRAC published 4 documents in the last 30 days — get each new one by email the day it lands.
Published date
1 September 2026
AUSTRAC has launched an investigation into Western Union Financial Services Australia Pty Ltd and The Western Union Company due to concerns about the company’s management of high-risk payment channels, customers and affiliates.
It is not an investigation into affiliates.
AUSTRAC CEO Brendan Thomas said Western Union operates one of the world’s largest international payment service providers.
“Western Union provides important services to customers in Australia and around the world who need to move money across borders, including via cash payments,” Mr Thomas said.
“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.”
The AML/CTF Act requires businesses that provide international payment services to implement effective programs to identify, manage and mitigate money laundering and terrorism financing risks, and to report suspicious activity to AUSTRAC.
AUSTRAC began the enforcement investigation having considered a range of factors including data and intelligence holdings, prior regulatory engagements and an external audit of Western Union ordered by AUSTRAC in 2025.
The investigation will focus on Western Union's:
AML/CTF program, including whether it effectively enables the company to identify, assess and mitigate money laundering and terrorism financing risks
transaction monitoring program, including whether it can identify known money laundering typologies, particularly those associated with child sexual exploitation and terrorism financing
governance arrangements, including the role of its global head office in decisions affecting the Australian entity's compliance with its AML/CTF obligations.
AUSTRAC will ultimately determine what action to take, if any, only once it has completed its investigation.
AUSTRAC's 2025 supervisory campaign into payment providers identified significant weaknesses in how some businesses detected and managed transactions linked to child sexual exploitation.
"The risks facing this sector include terrorism financing, human trafficking, fraud and child sexual exploitation.”
"Strong compliance systems and timely suspicious matter reporting are critical to detecting and disrupting criminal activity. That's what AUSTRAC expects from every business operating in this sector."
AUSTRAC acknowledges that Western Union has committed to addressing issues raised in the audit report.
Media contact
Email:
media@austrac.gov.au
Phone: 02 9950 0488
Read the rest free
Source: Australian Transaction Reports and Analysis Centre — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
More like this from AUSTRAC
AUSTRAC published 4 documents in the last 30 days. We email you each new one the day it's published.