Melbourne company experiences temporary AFSL suspension

Melbourne-based consulting firm Airrails has had its Australian financial services license temporarily revoked following an investigation by ASIC.

This means that no financial services can be provided during the suspension period from 21 June 2024 to 21 September 2024.

ASIC said Airrails was licensed to provide general advice on basic deposit products and non-cash payment products and to deal in basic deposit products and non-cash payment products.

Following an administrative hearing, ASIC found that Airrails had failed to file its financial statements, auditor’s report and audit opinion for the financial year ended 30 June 2023 within the prescribed time period and in accordance with the terms of its AFS licence.

ASIC launched an investigation into Airrails, as well as another AFSL called Prospero Markets, following an operation by the Australian Federal Police (AFP). This resulted in former officials and senior managers of Prospero, as well as a current Airrails official, being charged with money laundering offences in October 2023.

The AFP’s ASIC-backed Operation Avarus-Nightwolf targeted the Changjiang Currency Exchange money transfer chain, which is suspected of laundering nearly $229 million in criminal proceeds over the past three years.

Under the Company LawASIC may suspend or revoke an AFS licence if a licensee fails to comply with its general obligations under section 912A. These include the obligation to comply with financial services laws, including the requirement to file financial reports with ASIC annually.

Airrails has the right to apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.