AUSTRAC’s newest report reveals a visible rise in criminal use of cryptocurrencies, what provides a really convenient way to calling for stricter rules and global cooperation to fight money laundering.
Maybe they didn’t get the memo that fiat money is the money launderers favorite asset.
Southern sun
The Australian Transaction Reports and Analysis Centre, the AUSTRAC, a government agency focused on financial intelligence, observed an increase in criminal activities involving cryptocurrencies.
Their latest report, the 2024 AUSTRAC Money Laundering National Risk Assessment, outlines how criminals are using digital currencies, digital currency exchanges, and unregistered remittance services to launder money.
Cash is king
Despite the rise of digital currencies, most money launderers still prefer using traditional methods like cash, real estate, and luxury goods.
These channels were rated as very high risk in AUSTRAC’s report, while digital currencies received a high risk rating.
But there is another connecting fact, as AUSTRAC expects the criminal use of cryptocurrencies to grow because of their anonymity and speed.
Of course, vast majority of cryptocurrencies aren’t anonym at all, and the very definition of the public ledger, which is, you know, public, is giving a hint, something important for the law enforcement.
Monitoring everything
The report shared that the criminal use of digital currency, exchanges, unregistered remitters, and bullion dealers is on the rise.
The agency stressed the need for crypto exchanges to register with AUSTRAC under the AML/CTF Act to curb these activities.
Authorities are predicts that as digital currency use expands for legitimate purposes, opportunities for criminal use will also grow, and the world will need ongoing regulatory updates and international collaboration to effectively combat money laundering with crypto.
The Australian government taken steps to address these concerns, such as banning the use of crypto and credit cards for online gambling.
Companies not following these new rules could face fines up to 234,750 Australian dollars (about $155,000).
Have you read it yet? SEC vs. Ripple ruling one year ago, but what happened since then?
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