AUSTRAC Cracks Down on Non-Compliant Crypto and Remittance Providers

The Australian Transaction Reports and Analysis Centre (AUSTRAC) is determined to ensure the integrity of the country’s financial system. By cracking down on non-compliant remittance providers and cryptocurrency exchanges, the agency is bringing attention to the growing importance of compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) laws. With an increased focus on digital currencies and remittances, AUSTRAC’s actions show its commitment to securing Australia's financial ecosystem from potential criminal activities.

Australia's Anti-Money Laundering (AML) regulator, AUSTRAC, has taken significant action against non-compliant remittance service providers and digital currency exchanges. Thirteen companies have been targeted for failing to meet the necessary reporting obligations, while more than 50 others are under investigation.

Regulatory Action and Investigations

AUSTRAC, led by CEO Brendan Thomas, has refused registration renewals for six remittance providers and crypto exchanges. These companies were flagged due to serious criminal charges against their key personnel. AUSTRAC’s investigation also revealed systemic issues with non-reporting and under-reporting of suspicious transactions within the industry.

The regulator has sent alerts to over 50 other providers, signaling concerns about their compliance with AML/CTF laws. These alerts are an indicator to potential future actions, which could include suspension or cancellation of registrations.

Key Developments in the Crypto and Remittance Sector

Two major crypto exchanges, FTX Express and Zipmex Australia, have been removed from the Digital Currency Exchange Register following insolvencies. Meanwhile, AUSTRAC has issued reminders to 106 entities, stating the importance of meeting reporting obligations. Failure to comply could result in further regulatory penalties.

As of now, there are 417 digital currency exchanges and 5,112 remittance service providers registered with AUSTRAC. The regulator’s efforts are part of a broader initiative to improve the industry's transparency and reduce financial crime risks in Australia.

AUSTRAC’s ongoing focus includes the digital currency exchange sector, particularly following concerns about money laundering. The government agency is taking proactive steps to address these issues and ensure the security of the financial system.