Australia’s AML Regulator Targets 13 Crypto and Remittance Firms for Compliance Shortfalls 

Australia’s financial crime regulator AUSTRAC said Monday that it targeted 13 remittance and digital currency exchange providers over compliance issues.

In addition, the agency is now investigating 50 more providers. It is wrapping up a year-long campaign to address non-reporting and under-reporting issues. As part of this effort, the regulator has issued a new round of alerts to operators who may not be complying with requirements.

AUSTRAC CEO Brendan Thomas said the alerts indicate possible regulatory action. They show the agency’s concerns that operators may be failing to report suspicious transactions and activities.

“Late last year AUSTRAC cancelled, suspended and refused renewals of registration for 9 providers that had failed to meet their obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act,” Thomas said.

“A further 2 providers had conditions placed on their registrations and are now on notice – a failure to meet these conditions may lead to suspension or cancellation of their registrations.”

Companies Face Charges and Delistings

Officials at Auaisa Trading Pty Ltd, Amco Travelling and Exchange Pty, Blue Star Exchange Pty Ltd, B-Paywize Pty Ltd, W Solution Group Pty Ltd, and TSS Farms & Group Pty Ltd face serious charges. AUSTRAC stated that some have face conviction, protection or charges for serious offences. Legal disputes over entity management have further damaged their reputations for honesty and integrity.

At the same time, DIGI-SEND E-Money Pty Ltd, Rootie Technology Pty Ltd and Jinte Net Blockchain Pty Ltd ceased operations requiring registration.

Currencyfair Australia Pty Ltd and Currencyfair Limited initially missed the registration deadline. However, they have now obtained conditional registration.

Additionally, Zipmex Australia Pty Ltd and FTX Express Pty Ltd were delisted from the Digital Currency Exchange Register due to insolvency.

Crypto and Investment Fraud in Focus as Authorities Step In

In December, AUSTRAC established a crypto task force to identify and take action against crypto ATM providers violating anti-money laundering regulations.

Under the AML/CTF Act 2006, Digital Currency Exchanges (DCEs) must register with AUSTRAC. This includes crypto ATM operators.

They are also required to track transactions and conduct know-your-customer (KYC) identity checks. Additionally, they must report suspicious activity (SMRs) and file threshold transaction reports for cash dealings of $10,000 or more.

Meanwhile, ASIC last year said it helped take down over 5,500 fraudulent investment websites, more than 1,000 phishing links, and 615 crypto scam sites since July 2023. Investment scams, primarily through fake trading platforms, led to an estimated $1.3 billion in losses throughout 2023.

Many of these frauds were spread using fake news and deepfake videos featuring well-known local figures. The majority of the sites removed by ASIC were linked to these scams.