The Australian Transaction Reports and Analysis Centre (AUSTRAC) is encouraging inactive remittance businesses to voluntarily withdraw their registrations or risk cancellation.

More than 900 independent remittance businesses are registered with AUSTRAC but a large proportion could be inactive.

AUSTRAC CEO, Brendan Thomas, said it is important that only businesses with active services are listed on the register to limit the potential sale and use of these businesses for illicit purposes and ensure the public can verify operational businesses.

“We don’t want dormant businesses to maintain AUSTRAC registration, as registration suggests regulatory legitimacy and oversight but does not guarantee compliance. Dormant registrations can mislead the public and undermine the integrity of AUSTRAC registration.

We’re urging inactive businesses to voluntarily de-register. If businesses don’t step off voluntarily, AUSTRAC will step in and cancel their registration.”

Businesses require AUSTRAC registration to legally offer money transfer services and they must comply with obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act.

This includes maintaining up to date ownership and activity status.

Consumers can check whether a money transfer provider is registered by searching AUSTRAC’s remittance sector register.

AUSTRAC recently conducted a similar blitz on the digital currency exchange register, resulting in 22 businesses voluntarily withdrawing registration and a further 100 slated for cancellation. AUSTRAC will soon be providing a public version of its digital currency exchange register, to enable public confidence in the status of businesses in the sector.