Crypto crackdown targets ATM laundering rackets
Banks have welcomed new powers to protect international students vulnerable to money laundering schemes linked to cryptocurrency and crypto ATMs.
The changes to anti-money laundering and counter-terrorism laws were announced by Home Office Secretary Tony Burke in a speech to the National Press Club on Thursday.
Banks will now have the power to block the use of mule accounts by money launderers, which involves criminals taking over legitimate bank accounts.
A bank will be able to check the visa holder’s status if they suspect “mule activity”.
They can then use this to decide whether the account is being used by criminals and whether it should be closed.
Senior lecturer Anton Moiseienko said visa information would be useful to banks as international students or other visa holders were more vulnerable to being recruited by money-grubbers.
“If you are an international student, you are in a country for a limited time,” Dr Moiseienko said.
“So if someone says, ‘I’ll pay you to have your bank account and use it,’ you may not appreciate the risks involved and the liabilities you’re exposing yourself to.”
Australian Banking Association chief executive Simon Birmingham welcomed the changes and said access to visa status was a “sensitive and collaborative step” in closing mule accounts.
Under the changes, the head of Australia’s money laundering agency AUSTRAC will be able to restrict or ban high-risk products, services or distribution channels, including crypto ATMs.
The agency estimates that 85 percent of transactions sent by top users of crypto ATMs are derived from fraud or money messenger behavior.
“Having a power like this allows the CEO to adapt to the evolving risk landscape in more responsive ways,” said AUSTRAC CEO Brendan Thomas.
“For example, crypto transactions are being integrated into money laundering methods, and crypto ATMs present even greater risk due to the ability to convert money into digital currency that can be instantly and virtually anonymously sent around the world.”
AUSTRAC’s crypto taskforce, established in December, estimates that approximately 150,000 transactions occur annually and approximately $275 million are transferred through crypto ATMs in Australia.
In a sample of 90 of the most prolific crypto ATM users across Australia, AUSTRAC and law enforcement partners found 85 per cent were fraud victims or money couriers who were duped or coerced into moving money.
Dr Moiseienko said that if the government eventually decides to ban crypto ATM exchanges due to the high risk, it would be a “very dramatic step”.
“It remains to be seen whether the government will actually act this dramatically or whether we will see a greater regulatory and supervisory focus on crypto ATMs, which will be a much more traditional AUSTRAC approach,” Dr Moiseienko said.
Opposition Leader Sussan Ley also welcomed the proposed laws and said they were in the national interest.
“Anything that amounts to interference with criminals, whether it’s currency maneuvers, whether it’s dealing with children and online security, those are things we will look at closely and carefully,” he said.
Australia’s Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national news channel and has been providing accurate, reliable and fast-paced news content to the media industry, government and corporate sector for 85 years. We inform Australia.
