The Perth Mint has been spared a hefty fine for failing to comply with anti-money laundering rules by the federal government’s financial regulator.
The Perth Mint has been spared a hefty fine for failing to comply with anti-money laundering rules by the federal government’s financial regulator.
On Thursday, the Australian Transaction Reports and Analysis Centre revealed it would instead place an enforceable undertaking on Gold Corporation, which trades as Perth Mint, which would require the mint to fix compliance with anti-money laundering and counter-terrorism financing laws by April 2025.
AUSTRAC acting chief executive Peter Soros said the undertaking would ensure Gold Corporation complied with its obligations into the future.
“The enforceable undertaking is necessary to ensure that Gold Corporation’s remediation remains on course and we will continue to oversee their progress to ensure ongoing compliance,” he said.
“All businesses enrolled with AUSTRAC must have robust systems in place to ensure they meet their AML/CTF obligations.
“Businesses like Gold Corporation are the front line of defence in protecting Australia’s financial system from exploitation by criminals.”
The action comes after AUSTRAC in August 2022 found the mint was non compliant with AML/CTF laws and further audit findings reflected concerns around monitoring systems, controls and reporting obligations.
There were concerns the saga could cost taxpayers billions of dollars after claims more than 5,000 international monetary movements were not registered were aired by ABC’s Four Corners earlier this year.
Each instance of breaching anti-money laundering laws carries a fine of up to $21 million.
But AUSTRAC noted Gold Corporation had been cooperative and proactive in the time since to understand where improvements were needed.
The decision on Thursday does not mean Gold Corporation is out of the woods, with further enforcement action including court orders and fines possible should the state government agency fail to commit adequate resources to its remediation program.
WA auditor-general Caroline Spencer had earlier this month predicted the firm would avoid a fine when a federal inquiry into Perth Mint visited Perth earlier this month.
That hearing descended into farcical scenes when Mines and Petroleum Minister Bill Johnston took to the stand and clashed repeatedly with federal senators Linda Reynolds and Dean Smith.
Perth Mint chairman Sam Walsh said the mint’s remediation process was already under way.
“We are pleased AUSTRAC has noted the cooperation of our people during the process, the significant work the mint has undertaken in remediating our anti-money laundering systems and processes, and that The Perth Mint has already completed a number of critical improvements,” he said.
“The board and executive team welcome the external audit as an opportunity to support and inform our ongoing efforts to improve systems and processes.
“We take comfort that the auditor’s report confirmed the design and scope of our remediation program is appropriate to deliver effective remediation.”
The federal inquiry is due to present its findings into the mint’s regulatory compliance in March 2024.
