Cryptocurrency poses a heightened money laundering risk and is increasingly being exploited for money laundering, scams and money mule activities.
An internal Cryptocurrency Taskforce has been established by AUSTRAC to ensure digital currency exchanges (“DCEs”) that provide crypto ATM services meet minimum standards and have robust practices in place to identify and minimise the risk that their machines will be used to move money associated with scams, fraud or other proceeds of crime.
Under the AML/CTF Act 2006, DCEs, including those providing crypto ATM facilities, have to register with AUSTRAC and are also required to:
- undertake transaction monitoring;
- complete Know Your Customer information checks on customers;
- report suspicious activity in Suspicious Matter Reports and
- submit Threshold Transaction Reports for cash deposits and withdrawals of $10,000 or more.
AUSTRAC will be tightening monitoring of crypto ATM providers and has warned that AUSTRAC will take action against operators who are not following the rules.
Cryptocurrency and crypto ATMs are attractive avenues for criminals looking to launder money, as they are widely accessible and make near-instant and irreversible transfers.
As the use of cryptocurrency increases, so too will criminal exploitation, which is why this Taskforce will work to eliminate non-compliant high risk operations.
Cryptocurrency ATM providers need to ensure they are complying with their money laundering obligations and are reducing the risks of crime.
This is the first step in AUSTRAC’s focus to reduce the criminal use of cryptocurrency in Australia. It will be focusing on this industry over the course of 2025.
Currently there are approximately 400 DCE providers registered with AUSTRAC. While only a small number of these DCEs operate crypto ATM, Australia has 1,200 operating crypto ATMs, which is the third highest number globally.
AUSTRAC develops materials to support DCEs to identify financial crime risks, so they can target, monitor and report suspicious activity to AUSTRAC. Crypto ATM operators who do not comply with their AML/CTF obligations to know their customer, report suspicious activity and identify, manage and mitigate these risks, could face enforcement action.
Any person who suspects fraud or scam activity when using a crypto ATM should report this directly to the police and to the National Anti-Scam Centre’s Scamwatch, or the Australian Cyber Security Centre’s ReportCyber. Scamwatch and ReportCyber provides information about how to recognise and avoid scams. Further information can also be found at:
Scams involving cryptocurrency ATMs
Further information about risks associated with cryptocurrency, including a case study example, is available at:
