The Australian Transaction Reports and Analysis Centre (AUSTRAC) has announced it has taken enforcement actions against 13 remittance and digital currency exchange entities, while investigations continue into over 50 additional firms. This intervention arises from these platforms’ failure to accurately report suspicious transactions, a critical component in preventing the misuse of the financial system.
In recent months, AUSTRAC has actively worked to enforce compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act, resulting in the cancellation, suspension, or refusal of registration renewals for nine firms that fell short of their obligations. Additionally, six companies are facing serious charges, and three others have ceased operations that required registration. Two more companies are now registered but failed to meet requirements timely, while another two are under scrutiny, as any further non-compliance could lead to suspension or cancellation of their registrations.
Furthermore, AUSTRAC has delisted Zipmex Australia and FTX Express from its Digital Currency Exchange Register, as both entities are currently in liquidation.
Currently, AUSTRAC oversees a broad range of financial service providers, including 417 digital currency exchanges and over 5,100 remittance firms. Since the beginning of 2024, the agency has issued reminders to 106 entities regarding their compliance obligations.
Earlier in the previous year, AUSTRAC initiated a comprehensive investigation aimed at identifying non-compliant entities and enhancing the industry’s ability to report suspicious activities appropriately. This move followed an analysis revealing systemic issues related to non-reporting and under-reporting within the remittance and digital currency exchange sectors.
In an effort to strengthen compliance measures, AUSTRAC formed an internal task force to address issues related to cryptocurrency automated teller machines (ATMs) that are not adhering to local money laundering regulations. Despite only a limited number of registered businesses operating these ATMs, Australia has approximately 1,200 active crypto ATMs, ranking as the third-highest globally.
This focused approach signifies AUSTRAC’s commitment to enforcing compliance across financial sectors while mitigating risks associated with financial crime.