AUSTRAC Imposes Penalty on Cryptolink for Lapses in AML/CTF Compliance and Reporting Delays
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has levied a penalty against cryptocurrency firm Cryptolink for violations of anti-money laundering and counter-terrorism financing (AML/CTF) regulations. This action includes an infringement notice amounting to AU$56,340 (US$36,000) and the acceptance of a court-enforceable undertaking aimed at addressing identified compliance shortcomings.
The regulatory intervention stemmed from investigations conducted by AUSTRAC’s Crypto Taskforce, which uncovered instances of delayed submission of reports on substantial cash transactions, alongside inadequacies in Cryptolink’s procedures for evaluating risks. The authority emphasised that such sanctions are intended to preserve critical intelligence that might otherwise be compromised by insufficient adherence to standards.
AUSTRAC Chief Executive Brendan Thomas stated that the integrated enforcement approach resolves prior deficiencies while mandating enhancements to the firm’s operational frameworks.
“The infringement notice addresses previous non-compliance around reporting and the enforceable undertaking seeks assurance that Cryptolink has improved its risk assessments and strengthened its AML/CTF controls,” he said.
Thomas further noted that cryptocurrency automated teller machines presently rank among the most vulnerable conduits for money laundering within Australia, often exploited by illicit actors to obscure funds derived from fraudulent schemes.
An analysis recently undertaken by the taskforce revealed that 85% of transactions executed by the 90 most active users of crypto ATMs were linked to scam operations or money mule facilitation.
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Under the terms of the undertaking, Cryptolink is required to appoint independent auditors to verify the precision of its reporting mechanisms, evaluate the efficacy of controls governing large cash transactions, and conduct a comprehensive reevaluation of risks associated with money laundering and terrorism financing, all in alignment with AUSTRAC’s prescribed criteria.
Cryptolink has demonstrated full cooperation with the regulatory body and has settled the penalty in its entirety. AUSTRAC has specified that settlement of the infringement notice does not constitute an acknowledgment of culpability.
Thomas affirmed that AUSTRAC will maintain collaborative efforts with digital currency exchanges that uphold compliance obligations, while issuing a stern admonition: “if operators do not take this seriously, we will take action.” AUSTRAC Cryptolink penalty
