AUSTRAC is placing conditions on cryptocurrency ATM providers to help reduce their exposure to money laundering, terrorism financing and other serious financial crimes. 

CEO Brendan Thomas says a cryptocurrency taskforce found some providers have not been complying with anti-money laundering and counter-terrorism financing (AML/CTF) laws. 

“Some of them are not taking the right steps to understand their customers and risks, or they’re not reporting to us”. 

And with around 150,000 transactions every year moving close to $275 million, this is a serious concern.” 

The dangers 

Crypto ATMs are a convenient way to convert cash to cryptocurrency, with near-instant and irreversible transactions. AUSTRAC intelligence shows criminals abuse them for scams, fraud and money laundering. 

In one case, an Australian man was duped into converting close to $200,000 in criminal proceeds to cryptocurrency.

 “Our taskforce identified people aged over 50 as some of the most frequent users of crypto ATMs in Australia,” said Mr Thomas. 

“This is a huge concern because, as evidence suggests, a large number of 60 to 70 year old users are victims of scam activity.”

AUSTRAC’s taskforce has also referred some suspicious cases to federal, state and territory police. This led to police identifying potential crypto ATM scam victims, money mules and offenders.

New requirements 

The new requirements for crypto ATM providers include: 

• limits of $5,000 on cash deposits and withdrawals at crypto ATMs;
• enhanced customer due diligence controls; and
• mandatory scam warnings. 

AUSTRAC will keep the effectiveness of these conditions under review, and adjust if needed.

In May, AUSTRAC also refused to renew one provider’s registration, stating there was an unacceptable risk that its machines could be exploited for criminal misuse. 

More information 

If you operate crypto ATMs, our website has more information to help you comply with your AML/CTF obligations.

If you think you may be the victim of a scam or fraud, report it to ReportCyber and Scamwatch.