Melbourne advice firm Airrails has seen its Australian financial services licence temporarily suspended following an ASIC investigation.
This means it cannot provide financial services during the suspension period of 21 June 2024 to 21 September 2024.
ASIC said Airrails is licensed to provide general advice for basic deposit products and non-cash payment products and deal in basic deposit products and non-cash payments products.
Following an administrative hearing, ASIC found that Airrails failed to lodge its annual financial statement, auditor’s report and audit opinion for the financial year ending 30 June 2023 within the prescribed timeframe and in compliance with its AFS licence conditions.
ASIC commenced investigation into Airrails, as well as another AFSL called Prospero Markets, following an operation by the Australian Federal Police (AFP). This resulted in former officers and responsible managers of Prospero and a current officer of Airrails being charged with money-laundering offences in October 2023.
The AFP’s Operation Avarus-Nightwolf, which was supported by ASIC, related to Changjiang Currency Exchange money remitting chain that was alleged to have laundered almost $229 million in the proceeds of crime over the past three years.
Under the Corporations Act, ASIC may suspend or cancel an AFS licence if a licensee fails to meet its general obligations under s912A. This includes the obligation to comply with financial services laws, including the requirement to lodge financial statements annually with ASIC.
Airrails has a right to apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.
