US banking giant State Street has been fined $1.24million in Australia for failing to report international fund transfers on multiple occasions.
Government agency Australian Transaction Reports and Analysis Centre (AUSTRAC) issued the fine under anti money laundering legislation which requires banks to report international fund transfers within 10 days of sending or receiving the instruction. The infringement notice issued today reveals the bank breached the legislation 99 times prior to 1 July this year.
Nicole Rose, chief executive officer of AUSTRAC, said law enforcement agencies rely on financial transaction information and it is “critical transactions are reported accurately and on time”.
“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,” Rose said.
A spokesperson for State Street said: “We have reviewed our international fund transfer reporting systems and controls and have worked with an independent consultant to develop a remediation plan to address the issue.”
“We take our obligations under anti-money laundering and counter-terrorism financing legislation extremely seriously. There is no suggestion that the transactions in question were suspicious nor that there were deficiencies in State Street’s customer due diligence”. She added that there had been no financial or business impact for any clients.
Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act 2006 allows fines of up to $12,600 for each contravention.