The Australian Transaction Reports and Analysis Centre (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.

AUSTRAC acknowledges that Western Union has committed to addressing issues raised in the audit report.