The Australian Transaction Reports and Analysis Centre (AUSTRAC) announced this Wednesday that it has issued an infringement notice to State Street Bank and Trust Company, for failing to report international funds transfers.
In particular, the government financial intelligence agency said today that it has issued an infringement notice against State Street for more than $1.24 million.
Under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) in Australia, financial institutions need to report International funds transfer instructions (IFTIs) to AUSTRAC within 10 business days of sending or receiving the instruction.
According to the infringement notice from AUSTRAC, it has reasonable grounds to believe that the US-headquartered bank contravened section 45(2) of the AML/CTF Act by not reporting the sending or receipt of international funds transfer instructions within 10 days.
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The agency has alleged in the infringement notice that State Street has contravened section 45(2) on 99 occasions. The penalty for a single contravention for a body corporate is $12,600 for offences committed before the 1st of July 2020.
AUSTRAC Fines State Street $1,247,400
Because the alleged contraventions took place before the 1st of July 2002, the total penalty given by AUSTRAC to State Street is $1,247,400.
AUSTRAC Chief Executive Officer, Nicole Rose PSM said in its statement today: “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.
“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.”
AUSTRAC is working with State Street in order to address the compliance issues with the firm’s IFTI reporting systems and controls, the agency said.