The Australian financial crime regulator, AUSTRAC, has cancelled, suspended or refused to renew the registrations of 45 remittance and virtual asset service providers over the past year tightening its oversight of businesses exposed to money-laundering and terrorism-financing risks.
AUSTRAC said the businesses were removed for reasons including
lacking the capacity to operate,
being dormant or inactive,
failing to provide designated services for extended periods,
insolvency,
holding inappropriate registrations, or
failing to notify the regulator of material changes.
The crackdown comes as Australia steps up scrutiny of high-risk payment channels.
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“Businesses with cancelled registrations can no longer operate and where appropriate, we’ve referred individuals behind these businesses to law enforcement and regulatory partners locally and overseas,” said AUSTRAC CEO, Brendan Thomas.
“Financial crime operates across borders, and we work closely with our domestic and international partners to strengthen the financial system not just in Australia, but globally.”
According to the press release by AUSTRAC:
AUSTRAC’s focus on the payments, remittance and virtual asset sectors has continued through a range of regulatory actions in recent months, including the commencement of an investigation into Western Union and action to suspend Cryptolink’s crypto ATM network.
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AUSTRAC has also launched an investigation into Western Union over concerns about its management of high-risk payment channels, customers and affiliates, while suspending crypto ATM operator, Cryptolink.
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In one case, AUSTRAC worked with the National Anti-Scam Centre to cancel the registration of crypto business, GetCoins, after complaints and concerns over its ability to manage money-laundering risks. The regulator said the business was allegedly exploited by organised cryptocurrency investment scams.
Thomas said businesses whose registrations were cancelled could no longer operate and that, where appropriate, individuals behind them had been referred to law-enforcement and regulatory partners.
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The actions highlight a broader shift toward tougher scrutiny of crypto and remittance businesses as regulators seek to prevent digital-asset and cross-border payment channels from being exploited for organised crime and financial fraud.
“Our message to industry is clear: understand and manage your risks and meet your reporting obligations, or you may not be able to continue operating,” Thomas said.
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Stay tuned to BitKE for updates into crypto regulation globally.
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