Australian Transaction Reports and Analysis Centre directs MHITS Limited to appoint external auditor after payment platforms review

The Australian Transaction Reports and Analysis Centre has directed payment platform MHITS Limited to appoint an external auditor to assess whether it is meeting its anti-money laundering and counter-terrorism financing obligations, following further supervisory work from last year’s payment platforms campaign. The action reflects AUSTRAC’s concern that MHITS Limited’s transaction monitoring program is not attuned to the full range of risks in its cross-border payments business, including risks tied to offshore payments used to purchase child sexual exploitation material. AUSTRAC will set the audit scope, MHITS Limited must pay for the review, and the auditor must report findings within 180 days of appointment. The move follows earlier action in the same campaign, under which WorldRemit and Airwallex were also ordered to appoint auditors and four other payment platforms received letters of concern over serious deficiencies. AUSTRAC said the campaign found some online payment platforms were failing to identify and manage high-risk transactions, report suspicious matters, or exit high-risk customers despite clear warning signs. The audit findings will be used to help MHITS Limited address its obligations and to inform whether further regulatory action is required.