AUSTRAC, Australia’s financial intelligence agency, has raised significant concerns regarding the growing risks associated with crypto ATMs, particularly regarding operators failing to implement proper anti-money laundering (AML) and counter-terrorism financing (CTF) protocols.
In response to the rapid expansion of crypto ATMs across the country, AUSTRAC formed an internal task force in December under the leadership of CEO Brendan Thomas. This task force, comprising experts from regulatory, enforcement, and intelligence sectors, explicitly addresses the risks these ATMs present concerning financial crimes. According to Thomas, the team has engaged with crypto businesses to better understand the sector’s risks and assess their compliance with legal standards.
“It’s identified worrying trends and indicators of suspicious activity, including transactions that may be linked to scams or fraud,”
Thomas noted.
The agency has identified several troubling patterns of suspicious transactions, some of which may be linked to scams or fraud. The number of crypto ATMs operating in Australia has surged from just 23 in 2019 to nearly 1,600 today, raising concerns about the potential misuse of these machines, particularly in relation to cash deposits used for Bitcoin purchases.
Earlier this year, AUSTRAC ramped up its enforcement efforts in the digital currency exchange sector, following prior issues with remittance services and crypto providers. The agency has targeted 13 digital currency exchanges, while over 50 others remain under investigation for underreporting suspicious transactions and failing to meet AML obligations.
In addition to AUSTRAC’s efforts to address these risks, the Australian Securities and Investments Commission (ASIC) has also taken action against Brendan Gunn, a director of a fiat-to-crypto conversion business. Gunn has been charged for allegedly handling $181,000 in funds tied to criminal activity. ASIC claims that Gunn continued operating the business despite repeated warnings and account closures linked to scam concerns. He will appear in court on April 29 and could face up to three years or a fine if convicted.
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