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July 3 (Reuters) - Australia's financial crime watchdog ordered an external audit of Western Union Financial Services' local unit, after raising concerns over the money remitter's compliance with anti-money laundering and counter-terrorism financing (AML/CTF) rules.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) said on Thursday core anti-money laundering issues such as poor customer due diligence, delayed or non-reporting of suspicious matters and non-compliant international funds transfer instruction reporting were among its concerns.
While Western Union has self-disclosed issues with its systems and resorted to remedial action, AUSTRAC, however, is still not satisfied that the company is meeting its AML/CTF obligations.
"The recurrence of these issues raises concerns about the effectiveness of Western Union's AML/CTF program and internal processes, which is why we are taking this action," said AUSTRAC CEO Brendan Thomas.
Thomas adds that the risk for money laundering is high among businesses providing international fund transfers, with the remittance sector being particularly vulnerable to criminal exploitation.
The external auditor's report to the regulator will provide information which will aid Western Union to meet its compliance obligations in a better manner, the watchdog said, adding that the report will also state if further regulatory action was required.
"AUSTRAC will then assess if further regulatory action is appropriate," Thomas said.
Western Union Financial Services Australia did not immediately respond to a Reuters request for comment.
(Reporting by Sherin Sunny in Bengaluru; Editing by Rashmi Aich)
((Sherin.Sunny@thomsonreuters.com [Sherin.Sunny@thomsonreuters.com];))
