AUSTRAC cracks down on non-compliant crypto and remittance providers, issuing warnings and suspending licenses to improve financial safeguards.
AUSTRAC, Australia’s anti-money laundering (AML) regulator, recently took action against 13 remittance and crypto exchange providers for non-compliance. After one year of investigation, the regulator prepares to take action against businesses not reporting suspicious transactions correctly. AUSTRAC sent warnings to more operators who received alerts about potential regulatory sanctions.
AUSTRAC CEO Brendan Thomas announced that the enforcement warnings might result in future enforcement actions. AUSTRAC’s audit led to nine provider companies losing either their renewals or witnessing their licenses get suspended or outright canceled for non-compliance. The regulatory authorities placed two additional providers under notice due to noncompliance violations.
Several major participants within the industry sector received a direct impact from these actions. Businesses including Auasia Trading Pty Ltd and Amco Travelling and Exchange Pty together with other companies faced serious damage to their business reputations after their key personnel received convictions and prosecutions for criminal offences. Two organizations, DIGI-SEND E-Money Pty Ltd and Rootie Technology Pty Ltd and Jinte Net Blockchain Pty Ltd exited their operations and stopped being registered entities.
AUSTRAC Addresses Money Laundering Risks in Crypto Sector
Currencyfair Australia Pty Ltd together with Currencyfair Limited did not complete their registration process within the specified deadline. The providers successfully registered with certain conditions added to their approval. AUSTRAC is continuously monitoring compliance standards at these providers. Therefore, failing to meet the conditions will lead to suspension or cancellation of their registration.
Zipmex Australia Pty Ltd and FTX Express Pty Ltd were removed from the Digital Currency Exchange Register because they became insolvent. AUSTRAC is investigating non-compliant digital currency platforms. As a result, they aim to improve the reporting of suspicious deals to maintain financial safeguards.
AUSTRAC started sending obligation reminders to 106 entities that operate across multiple sectors during the period from January 2024. The regulator diminishes potential money laundering threats in digital currency exchange markets by using both its Crypto Taskforce protocol and extensive regulatory initiatives.
The financial system’s integrity relies heavily on AUSTRAC’s investigative activities. The regulator relies on reports received from registered entities to create useful investigative information for criminal investigations. AUSTRAC will continue to address risks, especially in the digital currency exchange sector, through its Crypto Taskforce and broader regulatory activities.
