Austrac targets Perth Mint over money laundering concerns

Anti-money laundering agency AUSTRAC has ordered the WA government-owned Perth Mint to appoint an external auditor amid concerns the precious metals enterprise may not have complied with regulations, including the reporting of suspicious matters.

“AUSTRAC identified compliance concerns following a period of engagement with the Australian-based Gold Corporation, which has resulted in the order to appoint an external auditor,” it said on Monday.

Gold Corp, which trades as the Perth Mint, has a high-profile board, including former Rio Tinto chief executive Sam Walsh, who is chairman of the company. Gold Corp sold more than $26 billion worth of precious metals last year.

AUSTRAC said the external auditor must report back within 180 days of being appointed, and will examine Gold Corporation’s compliance with anti-money laundering and counterterrorism financing requirements.

The agency said this included the requirement to have an ongoing customer due diligence program and to comply with suspicious matter reporting obligations.

“We will continue to work closely with Gold Corporation to address compliance concerns,” AUSTRAC chief executive Nicole Rose said.

“AUSTRAC does not hesitate to take action where a business that we regulate is failing to satisfy their responsibility to protect themselves and Australia’s financial system from criminal activity,” she said.

AUSTRAC has developed a reputation for strong action against some of Australia’s largest companies. This includes anti-money laundering compliance breaches by the banks which led to record-breaking corporate penalties in recent years, with Commonwealth Bank fined $700 million after a 2017 case and Westpac paying $1.3 billion after a 2019 lawsuit.

AUSTRAC also commenced proceedings against Crown Resorts this year.