Crackdown on crypto ATMs to tackle scams and money laundering
Crypto ATMs could be banned under new powers to help the government’s financial crime watchdog crack down on scammers and money laundering.
The Government will also beef up ways to disrupt “mule accounts” – legitimate bank accounts that criminals buy or rent from international students or other visa holders – by allowing banks to check a person’s residence status if they suspect illegal activity.
Home Affairs Minister Tony Burke will announce the tougher laws in a speech to the National Press Club on Thursday covering Labor’s approach to his portfolio.
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By continuing you agree to our Terms and Privacy Policy.The crackdown on ATMs that convert cash deposits into cryptocurrency, such as Bitcoin, comes after watchdog AUSTRAC estimated that 85 per cent of the transactions sent by the machines’ top users were the proceeds of scams or money mule activity.
As well, an estimated 99 per cent of transactions on the ATMs are cash deposits, suggesting they are a high risk of being used for money laundering.
AUSTRAC and other law enforcement officials have found that where other financial institutions stop victims from making their transactions, the criminals typically pivot to using crypto ATMs.
Australia has the third-highest number of crypto ATMs in the world, and the largest number in the region.
The number in operation has ballooned tenfold over recent years.
Mr Burke said a new digital asset business framework would extend laws that existed for other financial services, giving the head of AUSTRAC the power to restrict or prohibit certain high-risk products, services or delivery channels including crypto ATMs.
“The world of digital assets has both good and bad actors,” he said ahead of the speech.
“It is about legitimising the good actors and shutting out the bad – giving business certainty and consumers’ confidence.
“There are significant money laundering, terrorism financing and serious crime risks associated with Crypto ATMs.”
The crackdown on “mule accounts” will allow banks to check visa-holder status where they suspect the mule activity is happening, and use the information to help make decisions about whether the account is being used by criminals.
“This is an example of how we can use visa powers, together with the law enforcement agencies in the portfolio, to very simply provide a way of guarding against this form of money laundering,” Mr Burke said.
