AUSTRAC Shuts Down Raiyyan Exchange, Blocks Remitter Over Serious Money Laundering Risks

Australia’s financial crime watchdog has cut off a remittance provider after finding deep and unresolved failures in its ability to control money laundering and terrorism financing risks. AUSTRAC has refused to renew the registration of Yellow Sands Trading Pty Ltd, trading as Raiyyan Exchange, effectively banning the firm from providing money transfer services nationwide. The action sends a blunt signal to the remittance sector: weak compliance will not be tolerated.

AUSTRAC said the decision followed the identification of serious deficiencies in how the business understood, managed, and mitigated its financial crime exposure. The regulator worked closely with the New South Wales Police Force while assessing the risks posed by the operator, pointing to concerns that went beyond administrative lapses.

Acting AUSTRAC CEO Katie Miller warned that criminals actively seek out weak points in the financial system and that poor compliance creates an open pathway for illicit funds. She stressed that registration is not a formality and that failure to meet anti-money laundering obligations can end a business overnight.

Law enforcement echoed those concerns. NSW Police described remittance services as a vulnerable sector frequently targeted by organised crime, confirming ongoing monitoring of both registered and unregistered providers suspected of facilitating criminal activity.

The shutdown also highlights broader sector risks. AUSTRAC has repeatedly flagged offsetting arrangements used by remitters as a high-risk method for laundering funds, a concern reinforced in its 2024 National Risk Assessment on Money Laundering.