AUSTRAC has launched an investigation into Western Union over anti-money laundering controls in Australia.
Australia's financial intelligence agency, the Australian Transaction Reports and Analysis Centre (AUSTRAC), has opened an investigation into Western Union Financial Services Australia and its parent company, The Western Union Company, over concerns about the management of high-risk payment channels, customers, and affiliates. The regulator confirmed that Western Union's affiliates are not included in the scope of the investigation.
According to Reuters, AUSTRAC said the probe stems from what its CEO, Brendan Thomas, described as serious concerns that Western Union has failed to adequately manage risks linked to criminal exploitation. The investigation will examine the company's AML and CTF programme, focusing on whether its systems can identify, assess, and mitigate money laundering and terrorism financing risks.
The regulator will also review whether Western Union's transaction monitoring processes are capable of detecting known money laundering patterns. In addition, AUSTRAC will assess the company's governance framework, including the role played by its global headquarters in overseeing the Australian unit's compliance with AML/CTF requirements.
Western Union operates international payment services across multiple countries. A company spokesperson told Reuters that Western Union takes the AUSTRAC investigation seriously and will continue to cooperate fully with the regulator throughout the process.
Regulatory background
The investigation follows an external audit ordered by AUSTRAC in July 2025 into Western Union's Australian unit, which was launched due to concerns over its compliance with AML/CTF obligations. According to AUSTRAC, Western Union has committed to addressing the issues identified in that audit report.
The current investigation also follows AUSTRAC's broader 2025 supervisory campaign into payment providers, which identified significant weaknesses in how certain businesses detected and managed transactions linked to child exploitation. That campaign appears to have informed the regulator's continued scrutiny of remittance providers operating in Australia.
AUSTRAC has not indicated a timeline for the investigation's conclusion, stating only that it will determine whether to take further action once the process is complete.
Implications for the payments sector
The case adds to ongoing regulatory attention on money remittance providers' AML/CTF frameworks, particularly around the detection of transactions connected to exploitation and terrorism financing. For international payment companies operating across multiple jurisdictions, the investigation highlights the continued importance of aligning local compliance operations with group-wide governance and oversight structures. The outcome may also inform how other regulators assess the adequacy of transaction monitoring systems used by global remittance networks.
