Austrac has announced that it has fined MoneyGram Payment Systems, Inc., one of the world’s largest remittance network providers, $122,400 for providing money remittance services through unregistered remittance businesses.

It is an offence to provide remittance services and not be registered.

As a result of an AUSTRAC compliance assessment in 2014, MoneyGram advised AUSTRAC that it had provided remittance services through six affiliate businesses that were not registered with AUSTRAC. In determining its enforcement approach, AUSTRAC took into account the voluntary disclosure.

Recent remittance registration actions by Austrac are listed on the Remittance Sector Register.

Separately, in November 2014 a class action was commenced by Sydney Forex Pty Limited against Westpac in relation to proposed closures of bank accounts held at Westpac affecting foreign remittance businesses.

It was settled on the basis that Westpac would keep open until 31 March 2015 accounts of the remitters who filed a class action suit to give them time to find other companies that offer remittance services.

Background: The Conversation

Sanctions update
The Autonomous Sanctions (Designated Persons and Entities and Declared Persons – Democratic People’s Republic of Korea) Amendment List 2015 amends the Autonomous Sanctions (Designated Persons and Entities – Democratic People’s Republic of Korea) List 2012 and is designed to increase pressure on the Democratic People’s Republic of Korea to comply with its nuclear non-proliferation obligations and with United Nations Security Council resolutions, by imposing financial and travel restrictions on additional persons and entities.