ASIC has suspended the Australian financial services (AFS) licence of Airrails for three months, effective from June 21 to Sept. 21.
The suspension prevents Airrails from providing financial services during this period.
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 June 30, 2023 within the prescribed time frame and in compliance with its AFS licence conditions.
“Airrails failed to meet its general obligations under s912A,” ASIC said in a media release.
Under the Corporations Act, ASIC may suspend or cancel an AFS licence if a licensee fails to meet its general obligations, including the requirement to lodge financial statements annually. Airrails has the right to apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.
Airrails holds AFS licence number 526878, authorizing it to provide general advice and deal in basic deposit products and non-cash payment products to retail and wholesale clients.
The suspension follows ASIC’s successful application to wind up Prospero Markets on just and equitable grounds due to money-laundering charges involving former officers of Prospero and a current officer of Airrails.
The investigation into Airrails and Prospero was initiated following the Australian Federal Police’s Operation Avarus-Nightwolf, which led to money-laundering charges in October 2023 related to the Changjiang Currency Exchange money remitting chain.
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