National Australia Bank Imposes Restrictions on 'High-Risk' Exchanges
TL;DR National Australia Bank has implemented restrictions on transactions to certain crypto exchanges classified as “high-risk,” in line with other major banks in Australia. Binance was included in NAB’s measures due to allegations of improper practices. The recent move aims to minimize the impact of potential scams and associated risks, in particular those involving cryptocurrency.
National Australia Bank joins other major banks in restricting transactions to “high-risk” crypto exchanges.
Almost half of the funds related to scams reported to the Australian Financial Crimes Exchange were linked to cryptocurrency.
Bloomberg reported this morning that National Australia Bank Ltd. (NAB) has implemented restrictions on certain transactions to crypto exchanges classified as “high-risk.” The report suggested that this move aligns with other major banks in Australia that are also limiting customers’ access to digital-asset platforms due to concerns surrounding potential scams and associated risks.
According to an article published by NAB News, in a recent 30-day period, nearly half of the funds reported as part of scams to the Australian Financial Crimes Exchange were found to be associated with cryptocurrency. Cryptocurrency scams represent a rapidly increasing security menace, with Australians having lost over $221 million to such scams last year. Chris Sheehan, the executive in charge of group investigations and fraud at NAB, stated:
These scammers are part of organized, transnational crime groups. Increasingly, we’re seeing them use cryptocurrency platforms to send stolen funds quickly and often overseas.
Furthermore, Sheehan emphasized the bank’s commitment to making it increasingly difficult for criminals involved in these activities, ultimately aiming to minimize the impact on their customers.
In a recent article, Australian Financial Review noted that National Australia Bank has included Binance among other high-risk cryptocurrency exchanges, in the list of platforms targeted by enforcement measures to prevent payments deemed suspect. Westpac also prohibited its customers from depositing their money with Binance on May 18.
Binance is currently engaged in a battle to maintain access to banking services in Australia, amid allegations regarding facilitation of money laundering. The Australian Securities and Investments Commission conducted a search into Binance Australia’s office during the first week of July, as part of an investigation surrounding the exchange’s now-defunct local derivatives business.