AUSTRAC Uncovers Major Compliance Gaps in Crypto ATM Providers

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has raised alarms regarding AML/CTF compliance among some crypto ATM providers. In response to increasing concerns over money laundering and terrorism financing, AUSTRAC established a specialized taskforce led by CEO Brendan Thomas.

Taskforce Objectives

In December, the taskforce was created to:

• Assess compliance with AML/CTF laws.
• Understand the risks associated with crypto ATMs, also known as crypto kiosks.

Findings and Concerns

Mr. Thomas stated, “The taskforce has been busy engaging with businesses to understand the risks in their sector and assess their compliance with the law.” The taskforce has identified troubling trends, including transactions linked to scams or fraud.

Growing Number of Crypto ATMs

Australia is home to the highest number of crypto ATMs in the Asia Pacific, with their presence skyrocketing from 23 in 2019 to approximately 1,600 today. Most transactions involve cash deposits aimed at purchasing Bitcoin.

Commitment to Compliance

Mr. Thomas emphasized the importance of ensuring that crypto ATM providers implement robust practices to prevent their machines from being exploited for money laundering and scams. “We will continue to work with industry to raise standards, but we will also take action against operators who don’t comply,” he affirmed.