Australian Financial Watchdog Warns Of Increasing Crypto Money Laundering Risks In New Report

The Australian Transactions and Reports Analysis Centre (AUSTRAC) is warning residents down under over growing crypto money laundering risks, according to a newly released report by the financial regulator.

New AUSTRAC Assessment Shows Crypto Money Laundering Risks On The Rise

AUSTRAC’s Money Laundering In Australia National Risk Assessment for 2024 marks money laundering vulnerabilities associated with digital currencies when used as a transfer of value as high, with the level of risk slated to only increase over time.

Similarly, both digital currency exchanges and tokens used as a store of value possessed medium overall risk that the government agency predicts will rise over the next three years.

Today we released two new national risk assessments taking an in-depth look at the terrorism financing and money laundering threats and vulnerabilities in Australia.

Read more: https://t.co/qRfqsI9mz3#amlctf #nationalriskassessment #fatf #moneylaundering #terrorismfinancing pic.twitter.com/XwgoeJsN2j — AUSTRAC (@AUSTRAC) July 9, 2024

In addition to crypto-oriented threats, AUSTRAC regards luxury goods, casinos, cash-intensive businesses, and unregistered remittance dealers as additional money laundering vulnerabilities in the report.

“Despite a sustained focus and effort across Australia’s public and private sectors, money laundering remains an intractable issue as it is highly intertwined with all profit-generating crimes,” the assessment reads in part. “The challenges in disrupting money laundering are not unique to Australia. Many of the money laundering threats and risks highlighted in this assessment are noted by other jurisdictions. While the actors may differ, the issues and challenges are strikingly similar.”

International Pressure Mounts Over Illicit Digital Asset Use

News of AUSTRAC’s Money Laundering In Australia’s Nation Risk Assessment comes amidst increased international focus on illicit money laundering concerns, with terrorist organization Hamas reportedly having sought digital currency fundraising since as early as 2019.

Meanwhile, several U.S. lawmakers including Senator Elizabeth Warren have pushed for increased anti-money laundering provisions stateside, particularly in relation to increasing concerns of illicit digital use by terrorist organizations.

“The exploitation of digital currencies is increasing,” AUSTRAC CEO Brendan Thomas said in a July 9 statement. “This helps criminals move funds quickly, cheaply and with what they perceive as a degree of anonymity.”

According to data from blockchain analytics firm Chainalysis, nearly $100 billion in laundered funds have been sent from illicit wallets to conversion services since 2019 alone.

The AUSTRAC report lists “ongoing investigation and prosecution of offenders, confiscation of criminal assets, regulatory reform, capacity building throughout the region, industry outreach and education, and strengthening of partnerships” as remediations for current money laundering issues faced by the Anthony Albanese-led nation.

“Australia remains committed to creating a hostile environment for criminal actors who abuse the financial system for money laundering, terrorism financing and other serious crime,” the risk assessment reads.