AUSTRAC has issued Revolut Australia with an infringement notice of A$187,800 after the company disclosed that it had submitted reports late.
Revolut, a remittance service provider, self-reported failures to lodge international funds transfer instructions within the timeframe required under the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act.
AUSTRAC Chief Executive Brendan Thomas said that once Revolut identified the issue, it acted quickly to submit the missing reports and strengthen its systems.
“Revolut has been co-operative with AUSTRAC and paid the infringement notice in full,”
he said.
“These are the real-life consequences of failures to report, and it’s why failures to report need to have regulatory consequences, even where reporting entities detect, disclose and report the failures.
“Remittance services are attractive to money launderers and other types of criminals because they can move funds cheaply and quickly across borders.
“We take late reporting seriously because timely reports are critical to help us detect and disrupt financial crime, to strike while the iron is hot. If we don’t pick up suspicious movements as soon as possible, it denies law enforcement access to the intelligence that supports criminal investigations.”
Payment platforms are a focus of AUSTRAC’s 2024 regulatory priorities.
In its 2024 national risk assessment, the regulator identified remittance services, including payment platforms, as presenting a high and ongoing money laundering risk.
“The risks in this sector are high and they are consistent. It is not just traditional laundering that we’re concerned about, payment platforms are particularly vulnerable to the movement of funds associated with payments for child exploitation material.
“Timely international funds transfer reports allow us to analyse current activity that points to potential persons of interest. We need to get this intelligence to law enforcement so they can act. That’s why it is so important that businesses offering remittance services ensure they are meeting their AML/CTF obligations around reporting.”
Payment of an AUSTRAC infringement notice does not amount to an admission of liability.
Featured image credit: Edited by Fintech News Singapore, based on image by freepik
