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Australian Financial Regulator Cautions About Rising Risks of Cryptocurrency Money Laundering in Recent Report
The Australian Transactions and Reports Analysis Centre (AUSTRAC) is alerting citizens about the escalating risks of cryptocurrency-related money laundering, as indicated by a recently published report from the financial authority.
New AUSTRAC Assessment Indicates Rising Crypto Money Laundering Risks
AUSTRAC’s Money Laundering In Australia National Risk Assessment for 2024 identifies significant vulnerabilities related to money laundering involving digital currencies when utilized as a means of value transfer, with the risk level expected to rise over time.
In a similar vein, both digital currency exchanges and tokens utilized as a store of value are assessed to have a medium overall risk, which the government agency anticipates will increase in the coming 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
Beyond crypto-related threats, AUSTRAC also identifies luxury items, casinos, cash-heavy businesses, and unregistered remittance providers as additional vulnerabilities for money laundering in the report.
“Despite ongoing attention and efforts across Australia’s public and private sectors, money laundering continues to be a persistent challenge as it is deeply connected with all profit-driven crimes,” the assessment states in part. “The difficulties in combating money laundering are not exclusive to Australia. Many of the money laundering threats and risks noted in this assessment are recognized by other regions. While the actors may vary, the issues and challenges are remarkably similar.”
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International Pressure Increases Regarding Illicit Digital Asset Usage
The announcement of AUSTRAC’s Money Laundering In Australia National Risk Assessment coincides with heightened global scrutiny on illicit money laundering issues, with the terrorist group Hamas reportedly seeking digital currency fundraising since as early as 2019.
At the same time, several U.S. lawmakers, including Senator Elizabeth Warren, have advocated for enhanced anti-money laundering measures domestically, particularly concerning rising worries about the illicit use of digital assets by terrorist organizations.
“The misuse of digital currencies is on the rise,” AUSTRAC CEO Brendan Thomas stated in a July 9 announcement. “This enables criminals to transfer funds swiftly, inexpensively, and with what they believe to be a level of anonymity.”
Data from blockchain analytics company Chainalysis reveals that nearly $100 billion in laundered funds have been transferred from illicit wallets to conversion services since 2019 alone.
The AUSTRAC report outlines “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 strategies to address current money laundering challenges faced by the Anthony Albanese-led government.
“Australia remains dedicated to fostering an unwelcoming environment for criminal entities that exploit the financial system for money laundering, terrorism financing, and other serious crimes,” the risk assessment states.
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