Cryptocurrency company pays AUD 56,340 (USD 36,000) and accepts a court-enforceable undertaking. Australian Transaction Reports and Analysis Centre (AUSTRAC) fined Cryptolink. They broke AML/CTF rules. An infringement notice of AUD 56,340 (USD 36,000) was issued by AUSTRAC. A court-enforceable undertaking addresses compliance failures.

Findings by AUSTRAC’s Crypto Taskforce triggered the enforcement action. Late reporting of large cash transactions occurred at Cryptolink. Risk assessment processes showed deficiencies at the company. Valuable intelligence gets lost through weak compliance, AUSTRAC explained.

Scam Proceeds Frequently Laundered via Crypto ATMs, AUSTRAC Warns

AUSTRAC Chief Executive Brendan Thomas discussed the enforcement package’s dual purpose. Previous non-compliance around reporting gets addressed through the infringement notice, he explained. Cryptolink must improve risk assessments and strengthen AML/CTF controls through the enforceable undertaking.

Australia currently sees crypto ATMs as the highest-risk money laundering channels, Thomas added. Scam proceeds get disguised by criminals using these machines frequently. A task force review revealed alarming statistics recently. Scam or money mule activity appeared in 85% of transactions by the 90 most prolific crypto ATM users.

Independent Reviewers to Validate Reporting Accuracy

The undertaking requires specific actions from Cryptolink. Reporting accuracy needs validation by independent reviewers. Large cash transaction controls require testing by these reviewers. Money laundering and terrorism financing risks need reassessment to ensure AUSTRAC standards compliance.

Full cooperation came from Cryptolink during the regulatory process. The penalty payment was completed in full by the company. AUSTRAC clarified that an infringement notice payment doesn’t constitute liability admission. Compliant digital currency exchanges will continue receiving AUSTRAC support, Thomas said. Operators not taking compliance seriously will face action, he warned.