AUSTRAC, Australia’s financial intelligence agency, highlighted a surge in criminal use of cryptocurrencies and related services in its 2024 Money Laundering National Risk Assessment. The report details how criminals exploit digital currencies, exchanges, and unregistered remittance services for money laundering purposes.
Cash retains its dominance in money laundering
Despite global digitization, most money launderers prefer to use traditional channels for illicit transfer of funds — cash, real estate and luxury goods.
As indicated, traditional channels were deemed “very high” risk, while digital currencies were rated “high” risk. Nonetheless, AUSTRAC predicts rising criminal use of cryptocurrencies due to their enhanced anonymity and faster transaction speeds.
Key findings from the report include:
“The criminal use of digital currency, digital currency exchanges, unregistered remitters, and bullion dealers is on the rise.”
Criminals Exploit Crypto’s Anonymity and Speed
As a result, the Australian agency reiterated the need for crypto exchanges to register with AUSTRAC under the AML/CTF Act.
The report highlighted the crypto ecosystem, noting:
“Digital currency’s role as a value transfer method is expected to heighten money laundering risks in the coming years. As digital currency gains broader legitimate use, opportunities for criminal exploitation will also rise.”
The report emphasized the necessity for ongoing regulatory adjustments and global collaboration to combat money laundering involving cryptocurrencies and digital assets effectively.
The Australian government has recently enforced a ban on using crypto and credit cards for online gambling. Non-compliant companies could be fined up to approximately 234,750 Australian dollars ($155,000). Kai Cantwell, CEO of Responsible Wagering Australia, an organization representing Australian-licensed gambling providers, supports the measure, emphasizing its role in helping individuals manage their gambling habits more effectively.
“This is a crucial step to safeguard customers, facilitating better self-control over their gambling behavior,” Cantwell stated.
