AUSTRAC Probes Western Union Over High-Risk Payments
Synopsis
Australia’s financial crime regulator AUSTRAC has launched an investigation into Western Union over concerns linked to high-risk payments and financial crime controls.
Australia's financial crime regulator AUSTRAC has launched an investigation into the Western Union's handling of high-risk payment channels, customers and affiliates.
The investigation is into Western Union Financial Services Australia Pty Ltd and The Western Union Company, AUSTRAC said in a statement dated 1 September. The regulator stated that the investigation is not an inquiry into Western Union's affiliates.
AUSTRAC examines Western Union controls
The Western Union investigation will focus on the company's anti-money laundering/counter-terrorism financing program, transaction monitoring and governance arrangements.
Western Union will be assessed by AUSTRAC to establish whether its systems are adequate to detect, assess and control the risks of money laundering and terrorism financing. The review will include transaction monitoring of any activity relating to child sexual exploitation and the financing of terrorism.
The regulator will also take into account how the decisions relating to the compliance obligations for the Australian entity will be influenced by the global head office of Western Union.
The Western Union investigation is the result of previous regulatory interactions and an external audit requested by AUSTRAC in 2025.
AUSTRAC said it began to look into the matter after taking into account information and intelligence gathered and its previous regulatory engagement and outcomes of that audit.
Western Union has agreed to act to resolve problems found in the external audit report, AUSTRAC said.
Remittance business remains a regulatory focus
The Australian regulators continue to pay attention to payment firms that facilitate payments across the border while Australia's Western Union investigation is ongoing.
International payment services are identified as high risk for criminal exploitation, AUSTRAC says. Australian businesses that offer services related to a designated remittance will be required to be registered with AUSTRAC and satisfy obligations under the AML/CTF regime.
The remittance market is a big market. It was estimated in the World Bank Migration and Development Brief #40 that remittance inflows to LMICs amounted to $685 billion in 2024.
India was the biggest recipient with an estimated $129 billion followed by Mexico (68 billion), China (48 billion), the Philippines (40 billion) and Pakistan (33 billion).
Western Union reports latest results
The Western Union investigation follows a string of financial announcements by the US-listed company over its international money-transfer business.
In its most recent quarterly report, Western Union generated $1.9959 billion in revenue and $141.4 million in net income for the six months which ended on June 30, 2026.
During the second quarter, revenues totaled $1.0132 billion, with net income coming in at $76.7 million. Western Union has a global presence in over 200 countries and territories.
The investigation of Western Union will be followed up on by AUSTRAC and a decision made on whether to take further action.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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