Federal Court imposes penalties after businesses fail to pay AUSTRAC infringement notices

The Federal Court of Australia has imposed civil penalties of $50,000 and $45,000 respectively against Castra Licensee Pty Ltd (Castra) and Princeton Securities (NSW) Pty Ltd (Princeton) after they failed to pay infringement notices issued by AUSTRAC.

In September 2024, AUSTRAC issued infringement notices to both businesses for alleged breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

Neither business paid the infringement amount of $18,780, resulting in AUSTRAC commencing civil penalty proceedings in the Federal Court.

AUSTRAC CEO Brendan Thomas said infringement notices are a key enforcement tool and must be taken seriously.

“These businesses were given warnings and when they failed to comply, were issued infringement notices,” Mr Thomas said.

Mr Thomas said failure to pay an infringement notice creates unnecessary burden on all parties involved.

“If a business does not pay their infringement notice they risk ending up spending time and effort, and ultimately more money, resolving the matter through the court.”

The infringement notices issued to Castra and Princeton related to failures to meet mandatory reporting obligations under the AML/CTF Act.

Both Castra and Princeton admitted liability, with Princeton and AUSTRAC also making joint submissions on the appropriate penalty. These respective levels of cooperation were factored into the penalties awarded by the Court.

In separate hearings and judgments on 26 May, His Honour Justice Lee ordered Castra to pay $50,000 plus $15,000 in costs and ordered Princeton to pay an agreed $45,000 plus $5,000 in costs.

“This outcome makes it clear that businesses must respond to infringement notices within the statutory deadline or risk significant penalties,” Mr Thomas said.

Media contact

Email:
media@austrac.gov.au

Phone: 02 9950 0488