The Perth Mint is facing an investigation into whether it has complied with anti-money laundering laws.
The Perth Mint is facing an investigation into whether it has complied with anti-money laundering laws.
AUSTRAC - the federal government's financial transaction and analysis agency - issued a statement today, which announced the appointment of an external auditor to the Mint's parent company, Gold Corporation.
"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," the statement read.
"The external auditor must report to AUSTRAC within 180 days of being appointed."
They will examine the Mint's compliance with a requirement to have an anti-money laundering and counter-terrorism program, an ongoing customer due diligence program and the need to meet "suspicious matter" reporting obligations.
Two years ago, Perth Mint was the subject of allegations in the media that it had failed to do due diligence in the sale of more than $100 million worth of gold.
A series of reports in the Australian Financial Review questioned vetting processes around a Puerto Rico-based customer of the Mint, Euro Pacific Bank, which has been under investigation over links to organised crime.
There were also revelations of the Mint buying gold from a convicted killer in Papua New Guinea.
As part of its statement, AUSTRAC chief executive, Nicole Rose, said all businesses regulated by the agency must comply with their obligations under the Anti-Money Laundering/Counter-Terrorism Financing Rules Act.
"These compliance requirements are in place to protect businesses, the financial system, and the Australian community from criminal threats," she 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.
“We will continue to work closely with Gold Corporation to address compliance concerns.”
The Perth Mint has responded by saying it regularly identifies areas in need of improvement, including "historic practices that are no longer fit-for-purpose".
"We support the regulator’s decision for the Perth Mint to appoint an external auditor as part of efforts to ensure that our AML/CTF program is robust and appropriate," said chief executive Jason Waters.
"We are confident our strong and focused program already underway at the Perth Mint will address concerns identified by AUSTRAC.
"The Perth Mint has already initiated the process of identifying an external auditor in line with AUSTRAC’s audit schedule."
Gold Corporation will foot the bill for the costs of the external auditor.
