Australian Agency AUSTRAC Calls for Tighter Regulations After Rise in Cryptocurrency Crime

The Australian Transaction Reporting and Analysis Centre (AUSTRAC) recently released its 2024 National Money Laundering Risk Assessment. the report noted an increase in the use of Crypto Assets in Crimes and Money Laundering Activities.

In response to this observation, AUSTRAC has called for more stringent regulation of cryptocurrencies. reduce the growing criminal threats.

Criminals are taking advantage of cryptocurrency’s anonymity and high speed to launder money

In its latest AUSTRAC Money Laundering Assessment Report revealed that criminals prefer to use digital assets for criminal purposes because they offer anonymity. As a result, Australia has seen an increased use of cryptocurrencies in money laundering.

Moreover, crypto transactions are characterized by very fast execution speed, which ensures bad actors quickly end their illegal activities. The report also points to a potential increase in crimes committed via digital resources in the future.

It mentions: “The use of digital currency as a value transfer mechanism will pose an increasing vulnerability to money laundering over the next three years. As the use of digital currency for legitimate use increases, the opportunities for its criminal use will also increase.”

Following its findings, AUSTRAC called for tighter regulations on cryptocurrencies in Australia. The agency noted the importance constant reorganization of regulatory measures to control the use of crypto assets for money laundering.

The need for international cooperation in combating the growing threat of criminal use of cryptocurrencies was also highlighted. In addition, the agency debated the need for all cryptocurrency exchanges in Australia to register with AUSTRAC under the AML/CTF Act.

Let us recall that the Australian government recently Prohibited using credit cards and cryptoassets for online gambling. Authorities imposed a fine of AU$234,750 ($155,000) on companies that did not comply with the rules.

Cash and other traditional channels – the best methods of money laundering

With the rise of innovation and digitalization worldwide, most illegal activities still use traditional approaches in their transactions. Most money launderers move funds through cash, luxury goods, and real estate.

Domestic banks, money transfers and Casinos are another source of money laundering channels in Australia.

According to the AUSTRAC report, the agency labeled these traditional channels as having a “very high” risk score. In contrast, digital currencies received a lower “high” risk score than traditional channels.

Despite the differences in risk assessments, AUSTRAC still noted the potential for increased use of crypto assets in criminal activity. The report indicated that criminals are using digital currencies due to their greater anonymity and faster transaction speeds.

The report also noted that reporting entities in the country are having greater difficulty identifying and freezing suspicious financial transactions. This is due to the increased speed of financial transactions over the past few years.

In addition, some people hide their transactions by using several financial products. many platforms and institutions. Moreover, some key findings also revealed an increase in the number of unregistered money transmitters and gold dealers in Australia.

The report stated: “Crimes related to the use of digital currency, digital currency exchange, unregistered money transfers and gold trading are becoming more frequent.”