AUSTRAC has accepted an Enforceable Undertaking (EU) from Gold Corporation (trading as Perth Mint) to uplift its compliance with Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws.
In August 2022, following an assessment of Gold Corporation which identified non-compliance with the AML/CTF laws, AUSTRAC directed Gold Corporation to appoint an external auditor to assess its compliance with its anti-money laundering obligations.
The audit findings reflected AUSTRAC’s concerns in relation to Gold Corporation’s AML/CTF program, monitoring systems and controls, and reporting to AUSTRAC.
Following careful consideration of the audit findings, including the nature and seriousness of the non-compliance and Gold Corporation’s willingness to cooperate and proactively work to comply with its AML/CTF obligations, AUSTRAC has determined that an EU is the most appropriate regulatory response.
The EU will ensure that Gold Corporation commits sufficient resources to adequately implement its remediation program promptly, or risk further enforcement action. This can include seeking court orders to enforce the EU, or cancelling it and taking further action which may include commencing civil penalty proceedings in the Federal Court of Australia.
AUSTRAC considers that the EU is a necessary step to ensure that Gold Corporation addresses these AML/CTF deficiencies through its remediation program. The EU binds Gold Corporation to complete this remediation program under enhanced oversight from AUSTRAC and an independent third party expert, with the remediation to be completed by April 2025.
Further, Gold Corporation is required to demonstrate consistent progress to AUSTRAC in its remediation program, while ensuring that it meets agreed timeframes for remedial actions.
AUSTRAC acting Chief Executive Officer, Peter Soros, said that the enforceable undertaking is designed to ensure that Gold Corporation complies with its AML/CTF obligations into the future.
“The Enforceable Undertaking is necessary to ensure that Gold Corporation’s remediation remains on course and we will continue to oversee their progress to ensure ongoing compliance.” Mr Soros said.
“All businesses enrolled with AUSTRAC must have robust systems in place to ensure they meet their AML/CTF obligations. Businesses like Gold Corporation are the front line of defence in protecting Australia’s financial system from exploitation by criminals.”
Details of the EU are available on the AUSTRAC website.
AUSTRAC’s regulatory approach
AUSTRAC uses a range of regulatory tools and powers to ensure compliance. Interactions are tailored based on the level of risk posed by the entities we regulate and their circumstances, and range from education and collaboration, through to supervisory interventions and enforcement.
AUSTRAC enforcement powers include:
- issuing infringement notices
- issuing remedial directions, which require a reporting entity to take specified action to ensure compliance
- accepting enforceable undertakings detailing the specific actions a reporting entity will commence or cease in order to comply with the AML/CTF Act
- seeking injunctions and/or civil penalty orders in the Federal Court.
AUSTRAC does not provide public commentary on individual reporting entities’ compliance.
Details of the consequences of not complying are available on the AUSTRAC website.
About AUSTRAC
AUSTRAC (the Australian Transaction Reports and Analysis Centre) is the Australian Government agency responsible for detecting, deterring and disrupting criminal abuse of the financial system to protect the community from serious and organised crime.
Through strong regulation, and enhanced intelligence capabilities, AUSTRAC collects and analyses financial reports and information to generate financial intelligence.
