Australian Transaction Reports and Analysis Centre (AUSTRAC) is taking financial crimes seriously. Next year, it will target crypto ATMs to reduce money laundering risks by creating a new team that will monitor these ATMs for suspicious transactions.
In a statement published December 6th, Brendan Thomas, CEO of AUSTRAC, announced that the agency is putting crypto on its watchlist next year. Thomas said cryptocurrencies and crypto ATMs are convenient and allow quick and permanent transactions, making them attractive platforms for money laundering and other financial crimes.
The agency aims to curb illegal crypto use in Australia and will continuously track and monitor crypto ATMs starting next year.
An Internal Task Force To Track Crypto ATM Activities, Possible Crimes
According to AUSTRAC intelligence, crypto increases money laundering risks, and digital assets can be used for other financial crimes, like money mule activities and scams. To address these risks, an AUSTRAC crypto task force has been created to ensure that all digital currency exchanges (DCEs) that run crypto ATM services comply with standards.
Australia is cracking down on crypto ATMs to combat money laundering. AUSTRAC’s new task force enforces strict KYC, transaction monitoring, and reporting rules for operators.
Non-compliance risks heavy fines & imprisonment. With over 1,300 machines, Australia’s crypto ATM market… pic.twitter.com/i5iXfr26nL
— CryptoniteUae (@CryptoniteUae) December 6, 2024
The same task force aims to track and assess these ATMs to prevent the movement of money that can be used for fraud, scams, and other financial crimes.
AUSTRAC’s latest campaign against crypto ATMs is part of its initiatives under the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act 2006. As part of next year’s campaign against illegal crypto, the task force will initiate transaction monitoring and require these service providers to conduct Know Your Customer (KYC) checks on their customers.
Crypto ATM providers are also expected to report any suspicious activity and immediately report any transaction for at least $10,000.
AUSTRAC Warns Of Possible Penalties For Violations
According to AUSTRAC’s CEO, the crypto team will aggressively track and monitor these ATMs to reduce the risk of laundering and other financial crimes. The crypto ATM network in Australia is run by four major companies. Coinflip runs the biggest network, with 680 machines. Localcoin operates 465 machines, Cryptolink has 75, and Nova with 30 crypto ATMs.
AUSTRAC’s CEO warned that the agency would penalize operators who fail to comply and continued to ignore the rules.
AUSTRAC As Lead Agency In Fighting Financial Crimes
AUSTRAC is Australia’s lead agency in tackling the risks and challenges of terrorism financing and money laundering. Creating a crypto task force reflects the growing concern over the possible risks of using cryptocurrencies in the country. According to Thomas, financial crimes may also increase as crypto adoption increases.
In addition to its crypto task force, AUSTRAC is also building an awareness campaign that involves the general public. AUSTRAC encourages individuals to report any suspected scams or fraud using crypto ATMs to their agency, the police, or the National Anti-Scam Centre’s Scamwatch.
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