AUSTRAC Alerts Payment Providers to Take Action Against Child Exploitation Transactions
AUSTRAC Raises Alarm Over Suspicious Payments Linked to Child Exploitation
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has recently issued a warning to online payment providers regarding suspicious transactions potentially connected to child sexual exploitation. The regulatory body is urging these companies to enhance their monitoring systems and maintain heightened vigilance to prevent such misuse.
Identification of High-Risk Transactions by AUSTRAC
In a formal communication addressed to the sector of online payment platforms, AUSTRAC revealed that its regulatory operations uncovered several customers suspected of facilitating payments related to child sexual exploitation. This finding emerged from a focused supervisory campaign aimed at uncovering illicit activities within certain payment providers’ customer bases.
Alongside these alarming discoveries, AUSTRAC noted other significant compliance issues including insufficient reporting of suspicious matters, inadequate transaction monitoring, and the failure to adequately address customers representing higher risks.
Following this investigation, AUSTRAC compelled WorldRemit to bring in an external auditor to review their practices and issued letters of concern to five other businesses. Further inquiries into additional companies remain underway.
AUSTRAC Chief Condemns Oversights in Payment Providers’ Practices
Brendan Thomas, the CEO of AUSTRAC, expressed serious concern over these findings, emphasizing that some transactions were likely linked to child exploitation.
“Our team simulated transaction monitoring and identified suspicious activities, indicating payments that were very likely linked to child sexual exploitation,” said Thomas.
Brendan Thomas, CEO of AUSTRAC
He highlighted that accounts involved in such transactions should have been promptly deactivated due to the significant risks they presented. These accounts have since been referred to Australian Border Force and law enforcement agencies for further action.
Thomas strongly criticized payment providers for their failure to detect these high-risk accounts, calling the lapses unacceptable.
“When suspicious transactions are not effectively monitored and timely reports are not submitted, vital intelligence that could aid customs, border, and law enforcement agencies in apprehending offenders is lost,” Thomas added.
Brendan Thomas, CEO of AUSTRAC
AUSTRAC indicated that there are approximately 90 payment platforms operating within Australia, out of which 50 are also licensed remitters. All these entities are mandated to comply with Australia’s anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.
