Bangladesh, Sept. 1 -- Australia has opened a regulatory investigation into Western Unions Australian operations and its US-based parent company, placing one of the worlds best-known money-transfer brands under renewed scrutiny over its ability to prevent financial crime.

The investigation, launched by the Australian Transaction Reports and Analysis Centre (AUSTRAC), will examine whether Western Union Financial Services Australia and its parent company have adequate systems in place to identify, assess and manage risks associated with money laundering and terrorism financing.

The inquiry comes at a particularly sensitive time for the global remittance industry, which moves enormous amounts of money across borders every day but can also ...