ASIC has suspended the Australian financial services (AFS) licence of Airrails Pty Ltd (Airrails) for three months.

Airrails licence suspension means it cannot provide financial services during the suspension period of 21 June 2024 to 21 September 2024.

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.

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.

Background

Airrails holds AFS licence number 526878, which authorised it to provide the following services to retail and wholesale clients:

• provide general advice for basic deposit products and non-cash payment products; and
• deal in basic deposit products and non-cash payment products.

The suspension of Airrails’ AFS licence follows ASIC’s successful application to the Federal Court for orders that Prospero Markets Pty Ltd (Prospero) be wound up on just and equitable grounds and that liquidators be appointed to Prospero (24-070MR).

ASIC commenced its investigation into Prospero and Airrails following the Australian Federal Police’s Operation Avarus-Nightwolf which resulted in former officers and responsible managers of Prospero and a current officer of Airrails being charged with money-laundering offences in October 2023 relating to the Changjiang Currency Exchange money remitting chain.

Editor's Note:

The suspension of Airrails’ AFS licence ended on 10 September 2024 following lodgement Airrail’s annual financial statement, auditor’s report and audit opinion for the financial year ending 30 June 2023.