Key Points
- AUSTRAC is cautioning crypto exchanges and remittance providers to adhere to anti-money laundering regulations.
- The agency is currently examining over 50 providers and has recently taken action against 13.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has issued a stern warning to cryptocurrency exchanges and remittance service providers. They are urged to comply with anti-money laundering laws or face the potential penalties.
AUSTRAC’s Actions
The agency has disclosed that it is currently scrutinizing more than 50 providers. It has also recently taken action against 13 providers for non-compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act. Brendan Thomas, the CEO of AUSTRAC, stated that the agency had either canceled, suspended, or declined to renew the registrations of nine providers late last year.
Furthermore, two providers had conditions imposed on their registrations. If these conditions are not met, it may lead to suspension or cancellation of their registrations.
Year-Long Probe and Its Results
This action follows a year-long investigation into companies suspected of failing to report or underreporting suspicious transactions. The agency has placed restrictions on two providers’ registrations, with further violations potentially leading to termination.
Several executives from businesses such as Auaisa Trading Pty Ltd, Amco Travelling and Exchange Pty Ltd, and B-Paywize Pty Ltd are facing criminal charges or legal action. Meanwhile, Jinte Net Blockchain Pty Ltd and DIGI-SEND E-Money Pty Ltd were found to be running businesses that no longer require registration.
Bankrupt exchanges FTX Express and Zipmex Australia have been removed from the Digital Currency Exchange Register. According to AUSTRAC, a significant portion of financial crime investigations are affected by the failure of cryptocurrency exchanges to properly report suspicious transactions.
Thomas issued a warning to businesses operating in this space who are not meeting their obligations. Since January, AUSTRAC has sent compliance reminders to 106 companies. With the assistance of its crypto taskforce, the regulator has vowed to monitor the 417 registered cryptocurrency exchanges in Australia that it currently regulates.
