AUSTRAC Cracks Down On 13 Remittance And Crypto Firms For Reporting Failures
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The Australian Transaction Reports and Analysis Centre (AUSTRAC) said that it had taken action against 13 remittance and digital currency exchange firms. The regulator is also looking into more than 50 other firms in the same industry. It explained that these steps were necessary to ensure businesses follow financial laws.
AUSTRAC, which works to stop criminals from misusing the financial system, said these firms failed to report suspicious transactions properly.
It added that tracking such transactions helps prevent illegal activities like money laundering. The regulator explained that all registered firms must follow strict rules to keep the financial system safe.
AUSTRAC Takes Action Against Non-Compliant Firms
Brendan Thomas, the leader of AUSTRAC, said late last year, the regulator canceled, suspended, or refused to renew the registrations of nine firms. He explained that these firms did not meet the legal requirements under the Anti-Money Laundering and Counter-Terrorism Financing Act.
AUSTRAC revealed that six companies had been convicted, prosecuted, or charged with serious offenses. It added that three other firms were no longer running businesses that needed registration. Another two firms failed to complete their registration requirements on time but are now fully registered.
Thomas further said that two firms had conditions placed on their registrations. He explained that if they fail to follow these conditions, they could lose their registrations or be suspended. AUSTRAC noted that these steps were taken to ensure firms obey the rules.
The regulator said Zipmex Australia and FTX Express had been removed from its Digital Currency Exchange Register. These two companies are now in liquidation, meaning they have stopped operating and are closing down. AUSTRAC explained that businesses in this situation are no longer required to be registered.
AUSTRAC Registers Hundreds Of Digital Currency Firms
AUSTRAC currently registers 417 digital currency exchanges and 5,112 remittance providers in Australia. Since January last year, it has sent reminders to 106 firms about their legal responsibilities. It explained that these reminders help businesses stay updated on financial rules.
Thomas said AUSTRAC began an investigation early last year to find and stop businesses that do not follow the law. He explained that this was needed because the regulator found that some firms were not reporting suspicious transactions as required.
The agency also set up a special task force last year to check cryptocurrency ATMs that do not meet money-laundering laws. AUSTRAC noted that only a small number of registered businesses operate crypto ATMs in the country.
AUSTRAC said Australia has around 1,200 cryptocurrency ATMs, the third-highest number in the world. It added that the task force is working to ensure that these machines follow financial laws. AUSTRAC explained that strong measures are necessary to protect the financial system.
