Tuesday, September 10, 2019

Financial crime agency hits small foreign exchange dealer with $252,000 fine over potential money laundering exposure

Source: AUSTRAC media release 10 September 2019


Senior Business Correspondent Peter Ryan

Australia's financial intelligence agency has fined a small foreign currency operator $252,000 for failing to report international money transfers that could leave it exposed to money laundering and terror financing.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) says it is working with the Sydney-based Compass Global Holdings on concerns that it does not have adequate systems and processes in place to identify and manage money laundering and terrorism financing risks.

Compass Global chief executive Andrew Su told the ABC the company is working with AUSTRAC but is confident there is no exposure to breaches of anti-money laundering or counter-terror financing laws.

"We had a technical issue. Our technical provider failed us. But we are responsible," Mr Su said.

"AUSTRAC has been very helpful is working with us to resolve the issues and we have all the information relating to the transactions."

Mr Su said Compass Global would be paying the fine.

While the $252,000 infringement notice is tiny compared to the $700 million penalty paid by the Commonwealth Bank for 53,700 breaches, it highlights to risks facing small operators and AUSTRAC's constant scrutiny of suspicious transactions.

In a statement, AUSTRAC chief executive Nicole Rose said the agency's surveillance is critical in protecting to the Australia from serious crime like money laundering.

"AUSTRAC is working with Compass, to ensure they understand their compliance obligations. Where businesses don't comply with the law, AUSTRAC will not hesitate to take action to protect Australia's financial system and the community from criminal activity," Ms Rose said.

"Money laundering funds and enables terrorism and serious organised crime that causes harm to Australians such as human trafficking, drug trafficking, child exploitation and illegal firearm sales."

Last month, AUSTRAC announced a crackdown on unregistered money transfer dealers and warned of heavy fines, enforceable undertakings and Federal Court action.

In 2018/2019, individuals and businesses reported $60 billion of funds transfer instructions and received by people in Australia.

Money transfer dealers, banks and casinos are required to submit international funds transfer instructions to AUSTRAC to track potential exposure of money laundering and terror financing.

Follow Peter Ryan on Twitter @peter_f_ryan

"Just get on with it" - Lord Mayor of London Peter Estlin calls end on Brexit soap opera

The Lord Mayor of London Peter Estlin says the UK just needs to "get on with" a likely hard exit from the European Union. 

Mr Estlin is visiting Australia to sell the message that life will go on after Brexit, while admitting the uncertainties are making foreign investors nervous given the likely economic fallout if the UK leaves without a deal. 

Mr Estlin - who's a self confessed "remainer" - speaks with ABC's Peter Ryan.

Peter Estlin, City of London Lord Mayer (supplied)

Gender balance push slips with CEO equality 80 years away, just 2 women in 25 new ASX200 roles. I speak with CEW president Sue Morphet

Gender equality among Australia's top chief executive ranks could be 80 years away, with the latest survey showing female appointments is going backwards and some companies have no women at all in their leadership teams. 

Read the story here

The annual census by Chief Executive Women (CEW), which represents 560 of Australia's most senior women, slams "slow progress" in achieving gender balance with 17 companies still having no women in their executive leadership teams. 

CEW president Sue Morphet speaks with ABC's Peter Ryan.