AUSTRAC Acting CEO, Peter Clark, announced today that AUSTRAC has cancelled the registration of a remittance provider from the AUSTRAC Remittance Sector Register.
“AUSTRAC is satisfied that the registration of KMT Sydney Pty Ltd (KMT), an independent remittance provider, involves a significant money laundering, terrorism financing or people smuggling risk,” Mr Clark said.
“KMT’s registration has been cancelled as it:
- did not have suitable systems and procedures in place to manage or mitigate its money laundering or terrorism financing risks; and
- had provided designated remittance services prior to being registered with AUSTRAC.”
From 14 July 2014, it is an offence for KMT to provide a designated remittance service. The penalty for this offence is imprisonment for up to two years, a fine of $85,000, or both.
“The remittance sector has been identified globally as being vulnerable to misuse for money laundering purposes.