Perth Mint signs undertaking to overhaul anti-money laundering compliance

Perth Mint has escaped a fine after agreeing to fix “non-compliance” with anti-money laundering and terrorism financing laws.

Gold Corporation, the state-owned company which runs the Perth Mint has avoided a fin from the financial systems regulator. Picture: Supplied.

Perth Mint has escaped a fine after signing an enforceable undertaking with the financial systems regulator to fix “non-compliance” with anti-money laundering laws.

Gold Corporation, the state-owned company which runs the Mint, was placed under investigation by the Australian Transaction Reports and Analysis Centre (AUSTRAC) in January 2021.

Perth Mint is the only mint in the world with a government guarantee, and is the largest processor of newly mined gold in the world.

In the intervening years, a number of compliance failures were identified, including failing to verity customer identification and manage the risk of money laundering or terrorism funding.

In the undertaking, AUSTRAC noted an external auditor found its transaction monitoring rules were not designed in such a way that the company could appropriately monitor activity from customers that was a high risk of money laundering or terrorism financing.

The state-owned company has agreed to an enforceable undertaking to uplift compliance. Picture: Supplied/ Perth Mint.

The company also self-reported issues with its gold-backed cryptocurrency token and GoldPass app.

In April, Western Australia launched a review of its ownership of Gold Corporation as the company faced allegations it sold diluted gold bars to China.

The Mint’s official stance is that there is “no question about the gold value and purity of the gold bars”.

On Thursday, AUSTRAC revealed it had accepted an enforceable undertaking from the Gold Corporation to uplift its compliance.

In a statement, the regulator said the company’s willingness to cooperate and proactively work to comply with its obligations, meant the undertaking was the most appropriate regulatory response.

It noted the company had already commenced a “significant” effort to uplift a number of critical internal processes.

AUSTRAC acting chief executive, Peter Soros, undertaking was “necessary” to ensure remediation remains on course.

Perth Mint is the world’s largest processor of newly-mined gold. Picture: Supplied/ Perth Mint.

Businesses like Gold Corporation are the front line of defence in protecting Australia’s financial system from exploitation by criminals,”he said.

“We will continue to oversee their progress to ensure ongoing compliance.”

to comply with the undertaking, Gold Corporation will have to fully implement the recommendations of an external audit by April 2025.

Perth Mint Non-Executive Chair Sam Walsh AO said the mint was “fully committed” to address it’s compliance shortcomings.

“We’re working hard to meet the expectations and maintain the trust of the WA community, the gold mining sector, our business partners and customers,” he said.

“We continue to take steps to strengthen our compliance structures to ensure we play our part in protecting Australia’s financial system from criminal exploitation.”