The Australian Transaction Reports and Analysis Center (AUSTRAC) is taking enforcement action against a crypto ATM provider as it seeks to flex its regulatory muscle in the sector.
Austrac fines Cryptolink 56,340 Australian dollars ($37,000) after identifying “weaknesses” in anti-money laundering and counter terrorism financing (AML/CTF) compliance, According to a statement on Thursday.
Australia’s AML/CTF watchdog said it recognized the late reporting of large cash transactions, where it imposed an enforceable practice “designed to ensure that available intelligence does not slip through the cracks.”
Cryptolink must now enroll third-party auditors to verify that it has reported all required transactions to AustrAC, assess whether it has implemented effective controls for large cash transactions and ensure that its AML/CTF processes are fit for purpose.
Enforcement actions are coming in just weeks The Australian government has proposed giving new powers to Austrac To help clamp down on illicit activity through crypto ATMs.
Austrac’s Crypto Taskforce said it estimated that 85% of ATM transactions made by the 90 most practical users were the proceeds of scams and other nefarious acts.
Crypto ATMs allow the purchase of cryptocurrency by inserting cash or a bank card and having the crypto delivered to a designated wallet. They are often used for criminal activity by scammers who direct their victim to deposit funds in a certain wallet to pay for certain goods and then disappear, for example.
There are 2,024 such terminals in Australia, according to The data provided by the ATM radar coin. This is a slight dip from around 2,100 earlier this month when news of Austrac’s new powers were reported, suggesting they may now be having the desired effect.
