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AUSTRAC issues infringement notice to State Street

Maria Nikolova

The infringement notice for over $1.24 million concerns State Street’s failure to report international funds transfers.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) today announces that it has issued an infringement notice to State Street Bank and Trust Company for over $1.24 million for failing to report international funds transfers.

Under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) financial institutions including banks and credit unions must report IFTIs to AUSTRAC within 10 business days of sending or receiving the instruction.

AUSTRAC Chief Executive Officer, Nicole Rose PSM said that law enforcement agencies rely on financial transaction information to track criminals and criminal activity, so it is crucial that these transactions are reported accurately and on time to protect Australians from serious and organised crime and terrorism.

“Because the most sophisticated criminal syndicates operate across national borders, information about international funds transfers can provide a key piece of the puzzle for our law enforcement partners,” Ms Rose explained.

Last year, regulated businesses reported 155 million international transfers to AUSTRAC.

“Businesses are the first line of defence in protecting the community and our financial system from criminal abuse so it is critical for AML/CTF compliance and risk management to be embedded into everyday business practices to protect customers and businesses from criminals,” Ms Rose said.

AUSTRAC is working with State Street to address compliance issues with their IFTI reporting systems and controls.

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