Western Union faces AUSTRAC probe over money laundering risks

AUSTRAC, Australia’s financial crime regulator, has launched an enforcement investigation into Western Union Financial Services Australia and The Western Union Company. The probe focuses on whether the company has adequately managed risks related to money laundering and terrorism financing.

The investigation will review Western Union’s anti-money laundering and counter-terrorism financing programs, transaction monitoring systems, and governance arrangements. Specifically, regulators aim to determine if the company’s systems can identify money laundering methods linked to child sexual exploitation and terrorism financing. The review will also examine the influence of Western Union’s global headquarters on the Australian entity’s compliance obligations.

AUSTRAC CEO Brendan Thomas stated that the investigation was initiated due to “serious concerns that Western Union has failed to adequately manage” the risks associated with high-risk payment channels, customers, and affiliate relationships. The decision follows intelligence, previous regulatory engagements, and an external audit ordered in 2025.