AUSTRAC Removes 45 Crypto and Remittance Firms From Registers

Australia’s financial crime regulator, the Australian Transaction Reports and Analysis Centre (AUSTRAC), cancelled, suspended, or refused the renewal of 45 remittance and virtual asset service provider (VASP) registrations over the past year. The actions removed the businesses from AUSTRAC’s registers.

In an official update on September 7, AUSTRAC CEO Brendan Thomas said the measures reinforce the regulator’s expectations of industry. “The rapid movement of money across borders can create some of the highest ML/TF risks,” Thomas said.

Grounds for regulatory action

AUSTRAC’s actions targeted businesses that lacked the operational capacity to begin or continue trading, were dormant or inactive, had not provided designated services for extended periods, were insolvent, failed to hold the appropriate registration, did not notify AUSTRAC of material changes, or otherwise presented significant money laundering or terrorism financing risk.

Businesses whose AUSTRAC registrations were cancelled can no longer operate. Where appropriate, AUSTRAC referred individuals associated with those businesses to law enforcement and regulatory partners in Australia and overseas.

“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,” Thomas said.

GetCoins case and scam disruption

AUSTRAC worked with the National Anti-Scam Centre on BA Digital Ventures Pty Ltd, trading as GetCoins, after receiving customer complaints. The regulator requested information on the company’s operations to assess its ability to manage money laundering risks.

AUSTRAC cancelled GetCoins’ registration. The VASP was allegedly exploited by organized cryptocurrency investment scams. The joint action with the National Anti-Scam Centre disrupted organized investment scam activity linked to the business.

Recent actions in payments and crypto sectors

AUSTRAC’s focus on the payments, remittance, and virtual asset sectors has continued through additional regulatory steps in recent months. These include the commencement of an investigation into Western Union and the suspension of Cryptolink’s crypto ATM network.

In August, AUSTRAC suspended the registration of crypto ATM operator Cryptolink Pty Ltd for three months, beginning August 9. The suspension required the company to take its 96 cryptocurrency ATMs offline. Cryptolink is a registered VASP that enables customers to exchange cash for cryptocurrency through its ATM network.

AUSTRAC CEO Brendan Thomas stated that the regulator remained concerned about Cryptolink’s ability to manage high-risk transactions through its CATMs. The regulator also issued Cryptolink a A$56,340 infringement notice, which the company later paid.

These measures form part of AUSTRAC’s increased scrutiny of sectors identified as carrying heightened money laundering, terrorism financing, and other serious crime risks.

Regulatory priorities and industry message

Thomas said the rise in regulatory oversight reflects AUSTRAC’s priorities and its response to the agency’s annual risk update.

“We are proactively identifying and removing businesses that do not meet the expectation set by the registration regime, and we will continue to remove businesses that pose a significant money laundering or terrorism financing risk,” Thomas said.

“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.”

The 45 registration actions, the GetCoins cancellation, the Cryptolink suspension, and the Western Union investigation illustrate AUSTRAC’s ongoing enforcement approach across remittance and virtual asset service providers.

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