The Australian Transaction Reports and Analysis Centre (AUSTRAC) is ramping up its enforcement of Anti-Money Laundering and Counter-Terrorist Financing (AML/CTF) regulations for crypto ATM providers.
On December 6, AUSTRAC highlighted the growing use of crypto ATMs in money laundering and other illicit activities, noting that while Australia has around 400 registered crypto exchanges, only a fraction operate ATMs. This leaves many of the 1,200 crypto ATMs in the country potentially non-compliant.
AUSTRAC CEO Brendan Thomas expressed concern over the risks associated with crypto ATMs, which are attractive to criminals due to their ease of use and the speed of transactions.
He pointed out the devastating impact of scams on Australians, with some victims losing their life savings. In response, AUSTRAC has established a task force aimed at ensuring compliance among digital currency exchanges (DCEs) operating these ATMs, focusing on enforcing compliance standards and enhancing safeguards against fraud.
Operators of crypto ATMs must comply with stringent AML/CTF obligations, including registration with AUSTRAC, conducting Know Your Customer (KYC) checks, monitoring transactions, and reporting cash transactions over AUD 10,000. Non-compliance can lead to severe financial penalties and regulatory action.
Thomas warned that failure to meet these obligations could result in significant consequences, emphasizing AUSTRAC’s commitment to tackling non-compliant operations. This initiative reflects a global trend of heightened scrutiny on crypto ATMs, as seen in recent actions taken by authorities in Germany.
