AUSTRAC has opened an enforcement investigation into The Western Union Company over concerns about how it manages high-risk payment channels, customers and affiliates.
In a statement issued today (1 September), the Australian anti-money laundering regulator said the investigation covers Western Union Financial Services Australia and The Western Union Company. However, the company's affiliates are not part of the investigation.
The probe was initiated after considering several factors, including its data and intelligence holdings, previous regulatory engagement, and an external audit of Western Union that AUSTRAC ordered in 2025.
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."
The investigation will examine Western Union's anti-money laundering and counter-terrorism financing (AML/CTF) programme. The scope includes whether the money transfer firm enables the business to identify, assess and mitigate money laundering and terrorism financing risks.
Under the AML/CTF Act, businesses that provide international payment services are required to implement effective AML/CTF programmes and report suspicious activity to AUSTRAC.
AUSTRAC will also assess Western Union's transaction monitoring, including whether it can detect known money laundering typologies. The regulator said this includes typologies linked to child sexual exploitation and terrorism financing.
The probe will also review governance arrangements, including the role of Western Union's global head office in decisions that affect the Australian entity's compliance with AML/CTF obligations.
AUSTRAC said it will determine what action to take, if any, after the investigation has concluded.
The regulator added that Western Union has committed to addressing issues identified in the 2025 audit report.
"AUSTRAC opens AML/CTF probe into Western Union Australia" was originally created and published by Electronic Payments International, a GlobalData owned brand.