Aussie Watchdog Places Crypto ATM Providers ‘On Notice,’ Warns Over Missing AML Checks

Australia’s financial intelligence agency AUSTRAC, has warned crypto ATM operators on missing anti-money laundering checks and helping criminals launder money.

In a statement released Monday, the AML watchdog highlighted “worrying trends” of suspicious activities and transactions.

The notice arrives months after a panel of experts from AUSTRAC formed an internal taskforce to address AML and terrorism financing issues using crypto ATMs. The taskforce comprises members from the watchdog’s regulatory, enforcement and intelligence areas.

Brendan Thomas, CEO of AUSTRAC, noted that the panel has been busy “engaging with businesses” to understand the risks and address them with compliance.

“It’s identified worrying trends and indicators of suspicious activity, including transactions that may be linked to scams or fraud.”

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According to AUSTRAC estimates, there are around 1,600 crypto ATMs in use around the country. “Australia has the highest number of crypto ATMs in the Asia Pacific region,” the statement read.

In 2019, Australia hosted only 23 crypto ATMs nationwide, which spiked to 60 in 2022. Over the past three years, the number of Bitcoin ATMs has “grown rapidly,” it added.

Additionally, crypto exchanges have been regularly installing ATMs, which are used by customers to deposit cash and buy Bitcoin.

“We want to ensure crypto ATM providers have robust practices to minimise the risk that their machines can be used to launder dirty money or to scam and defraud innocent people,” CEO Thomas, noted.

He further noted that AUSTRAC will take action against operators who don’t comply with the law.

The AML regulator has already targeted 13 remittance and digital currency exchange providers due to a lack of compliance. Besides, the agency is stated that some have face conviction, protection or charges for serious offences.

Meanwhile, the country’s financial regulator ASIC has taken cautious steps to secure Australia’s growing crypto ecosystem. The agency has helped take down over 5,500 fraudulent investment websites, more than 1,000 phishing links, and 615 crypto scam sites since July 2023.

In a recent move, Australian police knocked down an organized crime syndicate involved in burglaries targeting crypto ATMs and Pokémon collector cards.

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