AUSTRAC, the Australian financial intelligence agency, has launched a task force to enforce compliance among cryptocurrency ATM providers amid growing concerns about criminal exploitation. The move aims to strengthen adherence to anti-money laundering and counter-terrorism financing (AML/CTF) regulations outlined in the AML/CTF Act 2006.

Australia is home to approximately 1,200 cryptocurrency ATMs, the third-highest number globally. While only a small portion of the country’s 400 registered digital currency exchange providers (DCEs) operate these machines, AUSTRAC has identified them as vulnerable to misuse for money laundering, scams, and fraud.‍

Tighter Monitoring and Compliance Requirements

Under the law, crypto ATM operators must register with AUSTRAC, conduct Know Your Customer (KYC) checks, monitor transactions, and report suspicious activity through Suspicious Matter Reports (SMRs). They are also required to submit Threshold Transaction Reports (TTRs) for cash deposits and withdrawals of $10,000 or more.

Brendan Thomas, AUSTRAC’s CEO, emphasized the importance of regulatory compliance to curb financial crime.

“Cryptocurrency and crypto ATMs are attractive avenues for criminals looking to launder money, as they are widely accessible and enable near-instant transfers,” Mr. Thomas said. “We will focus on eliminating high-risk, non-compliant operations.”

Non-compliance could result in significant financial penalties, Thomas warned.

AUSTRAC has urged the public to report suspected scams involving crypto ATMs to local authorities, the National Anti-Scam Centre’s Scamwatch, or the Australian Cyber Security Centre’s ReportCyber. Both platforms provide resources to help Australians recognize and avoid scams.

AUSTRAC’s cryptocurrency task force is part of the agency’s mission to protect Australia’s financial system from abuse by serious and organized crime groups. The agency also supports DCEs in managing financial crime risks and reporting suspicious activity.

This crackdown highlights AUSTRAC’s commitment to ensuring that cryptocurrency’s growth is not undermined by criminal exploitation.

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