AUSTRAC issues infringement notice to State Street over international funds transfer reporting breaches
AUSTRAC has issued an infringement notice to State Street Bank and Trust Company (State Street) for over $1.24 million for failing to report international funds transfers.
Under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) financial institutions including banks and credit unions must report IFTIs to AUSTRAC within 10 business days of sending or receiving the instruction.
Information reported in IFTIs provides AUSTRAC and our law enforcement partners with vital intelligence to combat serious and organised crime that operates across international borders such as terrorism, drug trafficking, fraud and tax evasion.
AUSTRAC Chief Executive Officer, Nicole Rose PSM said that law enforcement agencies rely on financial transaction information to track criminals and criminal activity, so it’s critical these transactions are reported accurately and on time to protect Australians from serious and organised crime and terrorism.
“Because the most sophisticated criminal syndicates operate across national borders, information about international funds transfers can provide a key piece of the puzzle for our law enforcement partners,” Ms Rose said.
Last year, regulated businesses reported 155 million international transfers to AUSTRAC.
“Businesses are the first line of defence in protecting the community and our financial system from criminal abuse so it is critical for AML/CTF compliance and risk management to be embedded into everyday business practices to protect customers and businesses from criminals," Ms Rose said.
AUSTRAC is working with State Street to address compliance issues with their IFTI reporting systems and controls.
The infringement notice is available on the Lists of enforcement actions taken page.
AUSTRAC’s enforcement powers
AUSTRAC has a range of enforcement powers available, which include:
- issuing infringement notices
- issuing remedial directions, which require a reporting entity to take specified action to ensure compliance
- accepting enforceable undertakings detailing the specific actions a reporting entity will commence or cease in order to comply with the AML/CTF Act
- seeking injunctions and/or civil penalty orders in the Federal Court
- referring a matter to the Commonwealth Director of Public Prosecution for possible criminal prosecution.
AUSTRAC (the Australian Transaction Reports and Analysis Centre) is the Australian Government agency responsible for detecting, deterring and disrupting criminal abuse of the financial system to protect the community from serious and organised crime.
Through strong regulation, and enhanced intelligence capabilities, AUSTRAC collects and analyses financial reports and information to generate financial intelligence.
Learn more about AUSTRAC: https://www.austrac.gov.au/about-us/austrac-overview
Phone: 02 9950 0488