Albanese government to launch anti-money laundering crytpo ATM crackdown
Criminals using crypto ATMs will be targeted by new money laundering laws.
Home Secretary Tony Burke will announce a crackdown on cryptocurrency transactions in a speech to the National Press Club on Thursday.
“There are significant money laundering, terrorism financing and serious crime risks associated with crypto ATMs,” Mr Burke is expected to say.
“Australia has the highest number of (crypto) ATMs in the region and the third highest in the world. Three years ago there were only 200 in operation, compared to 23 six years ago.
“This is about legitimizing the good actors and shutting out the bad; it’s about job security and reassuring consumers.”
Mr Burke said international students and other visa holders were being targeted to sell, rent or transfer details and provide “mule accounts” to money launderers. These accounts will be subject to a second set of reforms, along with changes to the Visa Authorization Verification Online Terms and Conditions.
The government’s financial intelligence agency, AUSTRAC, estimates that 99 per cent of crypto ATM transactions are cash deposits, posing a high risk of money laundering.
According to AUSTRAC estimates, approximately 85 percent of transactions made by the most frequent users of crypto ATMs are obtained from fraud or money couriers.
The agency says criminals are turning to crypto ATMs if they are banned by banks and other platforms.
“There are both good and bad actors in the world of digital assets. Our legislation for a new framework for the digital asset business will expand existing financial services laws in a targeted way,” Mr Burke said.
If a bank suspects mule activity, the visa holder will be able to check their status.
“This is about arming banks with the right information to help them manage risk and prevent their accounts from falling into the hands of criminals,” he said.
“This is an example of how we can use our visa powers, together with law enforcement across our portfolio, to provide a way to protect against this type of money laundering.”
According to Coin ATM Radar, there are 2006 crypto ATMs in Australia; More than 500 of these are in Sydney and around 300 in Melbourne and Brisbane, but the remainder are relatively evenly distributed across the capital and regional areas.
