Revolut Payments Australia Pty Ltd has been fined A$187,800 by Australia’s financial crimes regulator, AUSTRAC, for failing to report international money transfers on time. The penalty follows a self-disclosure by Revolut that it did not submit international funds transfer instructions within the timeframes required under the Anti-Money Laundering and Counter Terrorism Financing (AML/CTF) Act. The company has paid the infringement notice in full.
AUSTRAC, or the Australian Transaction Reports and Analysis Centre, is the country’s financial intelligence agency. It monitors and regulates financial transactions to detect and prevent money laundering, terrorism financing, and other financial crimes. AUSTRAC collects and analyzes transaction data, which helps law enforcement agencies identify suspicious activity and respond quickly to potential threats. AUSTRAC also provides guidance to financial institutions to ensure they meet reporting obligations.
AUSTRAC Chief Executive Brendan Thomas emphasized that timely reporting is essential to detecting and preventing financial crime. He said that even when a company self-reports mistakes, failures to meet reporting deadlines have real-life consequences. The fine demonstrates the importance of meeting obligations under the law.
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Cooperation and Compliance
Brendan Thomas noted that Revolut co-operated with the investigation and took steps to fix the issue. He highlighted that cooperation and corrective measures are positive actions, but they do not exempt a company from penalties.
International funds transfer instructions, or IFTIs, are notifications that financial institutions must submit whenever money is sent or received across borders. These instructions provide details about the sender, the recipient, and the amount involved. Timely reporting of IFTIs is critical because it allows AUSTRAC to track international money flows and identify suspicious transactions before they escalate. IFTIs help authorities spot patterns that may indicate illegal activity.
AUSTRAC explained that remittance services are particularly vulnerable to money laundering. These services allow fast and cheap transfers across borders, which makes them attractive to criminals. Delays in reporting can make it harder for authorities to act quickly.
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The regulator said that reporting obligations help law enforcement agencies gather intelligence about criminal activities. By ensuring reports are submitted on time, suspicious activities can be flagged and investigated promptly.
The Importance of Timely Reporting
The Anti-Money Laundering and Counter Terrorism Financing (AML/CTF) Act is a key Australian law that requires financial institutions to monitor and report certain financial activities. The law is designed to prevent criminals and terrorists from using the financial system to move or hide money. Under this law, companies must report IFTIs, suspicious transactions, and other relevant activities promptly. The AML/CTF Act sets out specific timeframes that companies must follow when reporting.
AUSTRAC has identified payment platforms and remittance services as a high and consistent risk for money laundering. Late reporting undermines the ability to monitor and respond to illegal financial activity.
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Brendan Thomas stressed that the fine on Revolut highlights the strict enforcement of reporting rules under Australia’s AML/CTF laws. He noted that all financial institutions, especially those handling international transfers, must adhere to these rules to maintain the integrity of the financial system.
AUSTRAC’s approach aims to balance enforcement with cooperation. While companies that self-report issues and take corrective actions may be viewed positively, regulatory penalties remain necessary. This helps maintain a strong and secure financial environment across Australia.
Revolut has confirmed that it has fully paid the A$187,800 fine. The company’s response and collaboration with AUSTRAC, as noted by Brendan Thomas, have been acknowledged by the regulator, underscoring the importance of immediate corrective measures in cases of non-compliance. The case reinforces the message that reporting requirements under the AML/CTF Act, including the timely submission of IFTIs, are crucial for the overall safety and reliability of financial transactions in Australia.