Proposed powers for AUSTRAC to target ‘high-risk’ crypto ATMs

The Federal Government has signalled its renewed crackdown on high-risk products and services such as cryptocurrency ATMs by moving to equip AUSTRAC with extended enforcement powers.

The amended powers would provide AUSTRAC with further enforcement options to “reduce money laundering risks associated with high-risk products, [services and delivery channels]”.

According to the legislation proposed by Minister for Home Affairs, Tony Burke, the powers would be channeled through AUSTRAC chief executive, Brendan Thomas.

Thomas said AUSTRAC’s own Crypto Taskforce believes there to be approximately $275 million laundered through crypto ATMs in Australia every year across 150,000 transactions.

“We’re still seeing an unacceptable risk of money laundering across some channels,” Thomas said.

“Having a power like this enables the CEO to adapt to the evolving risk environment in more responsive ways.

“For example, crypto transactions are becoming integrated into money laundering methodologies and crypto ATMs present even more risks due to the ability to turn cash into digital currency that can be sent instantly and virtually anonymously across the globe.”

“This is a product that is multiplying quickly – six years ago there were 23 machines in operation. Three years ago there were 200.”

“When we established the Crypto Taskforce at the end of last year there were 1,200. That number has now risen to 2,000.”

According to AUSTRAC analysis, the majority of high value crypto ATM transactions were related to scams and money mules with the money typically transferred to wallets based in high-risk regions. People aged between 50 and 70 were found to be the largest crypto ATM users and – despite being one of the most vulnerable age groups when it comes to scams – account for over 70 per cent of crypto ATM transactions by value.

“Organised criminals continue to find new and creative ways to launder money, making it harder for [the current AML/CTF regime] controls to work,” Thomas said.

“I welcome the Minister’s announcement to equip AUSTRAC with powers to better protect the community.”