AUSTRAC has refused to renew the registration of Yellow Sands Trading Pty Ltd, an independent remitter trading as Raiyyan Exchange.
Raiyyan Exchange is no longer permitted to provide money transfer services in Australia.
In exercising its regulatory functions, AUSTRAC identified serious deficiencies in Raiyyan Exchange's ability to understand, manage, and mitigate its money laundering and terrorism financing risks.
AUSTRAC worked closely with the New South Wales Police Force in forming this view.
Acting AUSTRAC CEO Katie Miller said businesses that fail to meet their obligations pose an unacceptable risk to the financial system.
"Criminals are always looking for cracks in the system and weak compliance is an open door," Ms Miller said.
"If AUSTRAC registered businesses fail to meet their anti-money laundering obligations, they risk their ability to run that business."
Commander of the NSW Police Force State Crime Command's Organised Crime Squad, Detective Superintendent Peter Faux said "NSW Police Force are committed to working with partner agencies including AUSTRAC to identify, investigate and address money laundering risks posed by Remittance Service Providers."
"Our detectives are aware that this is a vulnerable industry exploited by Organised Crime and are continually monitoring and investigating registered and unregistered remittance providers engaging in criminal activities."
AUSTRAC is urging businesses and consumers to check its remittance sector register before sending money overseas to ensure their provider is registered.
Providing remittance services without registration is a criminal offence.
Offsetting arrangements used by remittance businesses pose a heightened money laundering risk, as highlighted in AUSTRAC's National Risk Assessment on Money Laundering 2024.
"Remittance businesses with offsetting arrangements play a role in supporting financial inclusion. We expect businesses to monitor both the payer and payee side of a transfer to identify if a transaction is suspicious," said Ms Miller.
Businesses using these arrangements must register with AUSTRAC, comply with all AML/CTF obligations, and report suspicious matters promptly.
Ms Miller said AUSTRAC will continue to take strong action against non-compliance.
"We will not hesitate to act against businesses that ignore their obligations. Maintaining the integrity of Australia's financial system is our top priority."
