AUSTRAC has launched civil penalty proceedings in the Federal Court against two businesses – Castra Licensee Pty Ltd ACN 160 992 709 (Castra) and Princeton Securities (NSW) Pty Ltd ACN 162 219 794 (Princeton) for failing to meet their reporting obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

AUSTRAC alleges that neither business submitted an annual compliance report for the 2023 calendar year. 

In September 2024 AUSTRAC issued infringement notices to 16 businesses, including Castra and Princeton, for these failures. Payment of the infringement notice would have finalised the matter for both businesses. However, neither business paid their infringement notice, leading to AUSTRAC’s decision to commence court action.

AUSTRAC Acting CEO Katie Miller said AUSTRAC uses the information in compliance reports to better understand the risks that businesses, and Australia’s broader financial system, are facing. 

“The requirement to submit an annual compliance report is fundamental to a reporting entity’s AML/CTF obligations. AUSTRAC uses compliance reporting data to supervise regulated businesses, and to understand how businesses are meeting their obligations under the AML/CTF Act,” she said.

“Compliance reporting helps AUSTRAC to identify the industries and businesses that are more vulnerable to money laundering and terrorism financing and provide extra support or guidance where needed. 

“Criminals are constantly looking for ways to exploit the financial system. Businesses with weak AML/CTF controls are at an increased risk of criminal abuse.

“AML/CTF obligations are not optional. This action should serve as a warning to other businesses who think they can avoid complying with their obligations – submit your annual compliance report on time or face the consequences.”

Find out more about the annual compliance report and the consequences of not complying.