Australia’s financial crimes authority AUSTRAC’s investigation into the Perth Mint on suspicion it breached anti-money laundering and counter terrorism financial laws spells danger for the WA government.

AUSTRAC ordered an external auditor to examine the affairs of the WA Government-owned Gold Corporation, saying it has reasonable grounds to suspect some of the $26 billion in gold, precious metals and other securities transactions managed by the company had breached the law last year.

LISTEN 👇 to Nathan Lynch discuss the Perth Mint shortfalls

Thomson Reuters Asia Pacific financial crime expert Nathan Lynch (above), author of recently released book The Lucky Laundry, told Simon Beaumont on 6PR Mornings that the state government was unaware of its compliance responsibilities and should be held responsible for its oversight.

“Perth Mint is holding $6 billion of gold, insured by WA taxpayers on its books,” Lynch said.

“But also they have some complex products, like a digital app where you can trade peer-to-peer gold certificates, backed by the WA government.

“You can imagine how attractive this is to a criminal group that wants to move funds across borders.”

Former Rio Tinto chief executive Sam Walsh has chaired Gold Corp since January 2019.

Jason Waters took over as chief executive this year following the sudden departure of his predecessor Richard Hayes.

WA Premier Mark McGowan told Thomson Reuters his government was taking the matter very seriously.

“Following the appointment of a new CEO, Gold Corporation is constantly identifying areas of improvement, including addressing historic practices.”