AUSTRAC Puts CryptoLink on Notice After Finding ‘Weaknesses’ in AML Framework

Australian financial intelligence agency, AUSTRAC, has slapped a AU$56,340 fine (US$37,085) on crypto ATM operator CryptoLink on ￰0￱ action comes after the regulator’s Crypto Taskforce, established last year, found late reporting of large cash transactions and “weaknesses” in CryptoLink’s AML ￰1￱ has sent an infringement notice to the crypto firm, to make sure “useable intelligence does not slip through the cracks,” AUSTRAC CEO Brendan Thomas said in an official statement . “The infringement notice addresses previous non-compliance around reporting and the enforceable undertaking seeks assurance that CryptoLink has improved its risk assessments and strengthened its AML/CTF controls.” Crypto ATMs Become “High Risk Money Laundering Channels” in Australia: AUSTRAC As reported earlier by Cryptonews , Australia experienced a drastic surge in Bitcoin ATM installations over the past few ￰2￱ of August 2024, Australia hosted approximately 1,608 Bitcoin ATMs, which has now risen to 2,000, per CoinTimeATM ￰3￱ this month, AUSTRAC said it uncovered “a hidden world of scams and dodgy dealings,” from several kiosks.

“They pose serious risks for scams and money laundering, with dozens of scam victims identified,” it said. “Scams are one of the biggest drivers of suspicious activity and criminals have been using crypto ATMs to move and cash out stolen funds,” Thomas ￰4￱ to Engage Third-Party Reviewers The financial crime agency has mandated CryptoLink to engage third-party reviewers for validating its entire required transactions to AUSTRAC. Additionally, the reviewers will assess if CryptoLink has implemented effective controls for large cash transactions and its AML and terrorism financing risk assessment. “Cryptolink has fully cooperated with AUSTRAC and paid the infringement notice in full,” the announcement ￰5￱ CEO Thomas said that the agency will work with digital currency exchanges “to harden the sector against exploitation.” He added that the regulator will take action if crypto operators fail to take risks seriously.