The Australian Transaction Reports and Analysis Centre (AUSTRAC) recently released its 2024 Money Laundering National Risk Assessment. Per the report, Australia recorded increased use of crypto assets in crimes and money laundering activities.
Following this observation, AUSTRAC called for tighter crypto regulations to curb the growing criminal threats.
Criminals Leverage Crypto Anonymity And Fast Speed For Money Laundering
In its latest money laundering assessment report, AUSTRAC revealed that criminals prefer to use digital assets for crimes since they offer anonymity. As a result, Australia has witnessed an increased use of cryptocurrencies in money laundering.
Moreover, crypto transactions have very fast execution rates, giving the bad actors speedy completion of their illegal activities. The report also indicated a potential rise in crimes via digital assets in the future.
It mentioned: “The use of digital currency as a value transfer mechanism will pose an increasing money laundering vulnerability over the next three years. As the use of digital currency expands for legitimate use, opportunities for criminal use will also increase.”
Following its discoveries, AUSTRAC urged for tighter crypto regulations in Australia. The agency noted the relevance of constant readjustment of regulatory measures to control the use of crypto assets in money laundering.
It also highlighted the need for international cooperation in the fight against the growing menace of crypto use in crimes. Moreover, the agency debated the importance of registering all crypto exchanges in Australia with AUSTRAC under the AML/CTF Act.
Recall that the Australian government recently banned the use of credit cards and crypto assets for online gambling. The authorities imposed a penalty of AU$234,750 ($155,000) on firms that fail to comply with the rules.
Cash And Other Traditional Channels Top Money Laundering Methods
Amid the growth in innovation and digitalization worldwide, most illicit activities still use traditional approaches in their deals. Most money launderers move funds using cash, luxury goods, and real estate.
Domestic banks, remitters, and casinos are other sources of money laundering channels in Australia.
According to AUSTRAC’s report, the agency labeled these traditional channels as having a “very high” risk factor. Conversely, digital currencies received a lower “high” risk factor label than traditional channels.
Despite the difference in risk assessments, AUSTRAC still noted a potential increase in the use of crypto assets in criminal activities. The report pointed out that criminals use digital currencies due to their greater anonymity and faster rates of transaction execution.
Further, the report noted that reporting entities in the country face more difficulties in identifying and freezing suspicious financial transactions. This is due to increased execution speeds of financial transactions within the past few years.
Also, some individuals conceal their transactions using several financial products across multiple platforms and institutions. Moreover, some key findings also revealed the growth of unregistered remitters and bullion dealers in Australia.
The report stated: “Criminal use of digital currency, digital currency exchanges, unregistered remitters and bullion dealers is increasing.”
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
