Crypto Money Laundering: Aussie Agency to Target Crypto ATM Providers

Task Force Targets Crypto ATMs

The Australian Transaction Reports and Analysis Centre (AUSTRAC), Australia’s financial intelligence agency, announced Dec. 6 it will crack down on cryptocurrency ATM providers that fail to comply with the country’s anti-money laundering regime. The agency said its intelligence shows cryptocurrency is “increasingly being exploited for money laundering, scams and money mule activities.”

To address this, AUSTRAC said it has set up a task force to ensure providers of ATM services meet minimum standards. The task force will work to ensure crypto ATM operators have the means to identify and minimize the chances of their devices being used by scammers and money launderers.

AUSTRAC CEO Brendan Thomas said the agency will increase monitoring of ATM providers and warned of tough action against noncompliant providers. He said:

Cryptocurrency and crypto ATMs are attractive avenues for criminals looking to launder money, as they are widely accessible and make near-instant and irreversible transfers. We’re seeing too many Australians falling victim to scams carried out through cryptocurrency, and we’ve heard of some victims losing their life savings, which is just heart breaking.

The AUSTRAC boss added that his agency will initially prioritize targeting ATM providers as part of a broader objective of reducing the criminal use of cryptocurrency in Australia.

According to a statement released by the agency, Australia’s 1,200 operating cryptocurrency ATMs rank third globally. These are operated by a fraction of the 400 digital asset exchange providers registered with AUSTRAC.

Meanwhile, the Australian agency said it has developed materials to help crypto exchanges identify financial crime risks. In addition, the agency urged members of the public who suspect fraud or scam activity when using a crypto ATM to report this to the police and the National Anti-Scam Centre’s Scamwatch.