AUSTRAC initiates investigation into Western Union

AUSTRAC announced on 1 September 2026 that it had launched an investigation into Western Union Financial Services Australia Pty Ltd and its parent, The Western Union Company, over concerns about the company's management of high risk payment channels, customers and affiliates. AUSTRAC stated that the investigation does not extend to Western Union's affiliates.

AUSTRAC Chief Executive Brendan Thomas said payment service providers are internationally recognised as high risk for criminal exploitation, and that AUSTRAC had serious concerns Western Union had failed to adequately manage those risks. The investigation will examine Western Union's anti money laundering and counter terrorism financing program, including whether it effectively identifies, assesses and mitigates money laundering and terrorism financing risks, and its transaction monitoring program, including its ability to identify known typologies associated with child sexual exploitation and terrorism financing.

AUSTRAC said it commenced the investigation having considered a range of factors, including its data and intelligence holdings, prior regulatory engagement with Western Union, and an external audit of the company that AUSTRAC ordered in 2025. The announcement follows AUSTRAC's record enforcement outcomes against other major Australian institutions in recent years, including penalties against Westpac, Commonwealth Bank and Crown Resorts, though those matters involved different conduct and different companies.

At this stage AUSTRAC has only confirmed the commencement of an investigation. No findings of contravention have been made, and it remains open to AUSTRAC to conclude the investigation without taking further enforcement action, or to pursue civil penalty proceedings or other remedies depending on what the investigation finds.