AUSTRAC Targets 50 Crypto Providers in AML Crackdown

The Australian Transaction Reports and Analysis Centre has warned cryptocurrency exchanges and remittance providers to follow anti-money laundering laws or face the consequences.

In a press release statement published on its official website, the agency revealed that it is now reviewing over 50 providers and recently took action against 13 of them. According to AUSTRAC CEO Brendan Thomas, the agency canceled, suspended, or refused to renew the registrations of nine providers late last year.

This was after they failed to comply with the Anti-Money Laundering and Counter-Terrorism Financing Act. Thomas added:

A further 2 providers had conditions placed on their registrations and are now on notice – a failure to meet these conditions may lead to suspension or cancellation of their registrations.”

The latest crackdown comes after a year-long probe into companies that may have failed to disclose or underreported suspicious transactions. AUSTRAC has imposed restrictions on two providers’ registrations, stating that additional violations may result in termination. 

Several executives from businesses like Auaisa Trading Pty Ltd, Amco Travelling and Exchange Pty Ltd, and B-Paywize Pty Ltd have been charged with crimes or are subject to legal action. Jinte Net Blockchain Pty Ltd and DIGI-SEND E-Money Pty Ltd, on the other hand, were found to be operating businesses that no longer require registration.

After filing for bankruptcy, struggling exchanges FTX Express and Zipmex Australia have been taken off the Digital Currency Exchange Register. According to AUSTRAC, a huge portion of financial crime investigations are impacted by cryptocurrency exchanges’ failure to appropriately disclose suspicious transactions.

“Businesses working in this space who are not meeting their obligations can expect to hear from us,” Thomas warned.

106 companies have received compliance reminders from AUSTRAC since January. With the help of its crypto taskforce, the regulator has pledged to keep an eye on the 417 registered cryptocurrency exchanges in Australia that it presently regulates.