The anti-money laundering regulator has shut down two western Sydney-based remittance services shops owned by an Iraqi-Australian out of concern the non-compliant companies were vulnerable to being used to finance terrorism.
The regulator, Austrac, today cancelled the registrations of Ghadir Group and Treasure Chest Trading following allegations of ongoing noncompliance with the anti-money laundering rules, which it said was resulting in “unacceptable money laundering and terrorism financing risk”.
Documents held with the corporate regulator show Auburn resident Ahmad Alhamdani was the owner of both independent remittance providers.
Mr Alhamdani’s businesses allegedly failed repeatedly to meet the deadline for reporting transactions to the regulator and made false and misleading reports to Austrac, including reports relating to individuals with no association with their business.
“Remitters that do not take their obligations seriously pose a threat to the community by opening the door for criminals and terrorist groups to conceal and move money through the financial system,” said Austrac chief executive Nicole Rose.
“The remittance sector is a key part of Australia’s financial system, but it is also vulnerable to exploitation by criminals,” Ms Rose said.
Read the article by Michael Roddan in The Australian.