AUSTRAC (the Australian Transaction Reports and Analysis Centre) has intensified its efforts to enforce compliance in the remittance and digital currency exchange (DCE) sectors.
On February 17, the Australian regulator announced actions against 13 providers, with over 50 others under scrutiny for potential non-compliance. Notably, these measures are part of a year-long initiative addressing systemic issues in reporting suspicious transactions.
Brendan Thomas, AUSTRAC’s CEO, explained that non-compliant businesses could face severe consequences. “Late last year, AUSTRAC cancelled, suspended, and refused renewals of registration for nine providers that had failed to meet their obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act,” Thomas said in the announcement.
Two additional providers have been placed on notice, with conditions attached to their registrations.
Regulatory Actions Highlight Compliance Failures
AUSTRAC’s recent actions underscore the importance of adhering to anti-money laundering (AML) regulations. Key personnel from companies faced legal proceedings that raised concerns about their integrity.
Meanwhile, DIGI-SEND E-Money Pty Ltd and Rootie Technology Pty Ltd ceased operations requiring registration. Currencyfair Australia Pty Ltd and Currencyfair Limited were granted conditional registrations after failing to meet initial requirements.
Additionally, two high-profile providers—Zipmex Australia Pty Ltd and FTX Express Pty Ltd—were removed from the Digital Currency Exchange Register following insolvency proceedings.
These cases highlight AUSTRAC’s commitment to ensuring only compliant operators remain active in the sector.
AUSTRAC’s Role in Combating Financial Crime
AUSTRAC plays a critical role in protecting Australia’s financial system from criminal abuse. The agency relies on reports from regulated entities to generate financial intelligence used by law enforcement in thousands of investigations annually.
Brendan Thomas emphasized the importance of this reporting: “Remittance service providers and digital currency exchanges play a vital role in detecting and disrupting criminal activity.”
Since January 2024, AUSTRAC has issued reminders to 106 entities across various sectors regarding their compliance obligations. Businesses failing to meet these requirements risk further regulatory action.
Current records show 417 registered digital currency exchanges and 5,112 remittance registrations nationwide.
Focus on Strengthening Industry Compliance
AUSTRAC remains particularly concerned about money laundering risks within the DCE sector. Through its Crypto Taskforce, established in 2024, the agency continues to enhance oversight and address compliance gaps.
Thomas warned that businesses neglecting their anti-money laundering obligations “can expect to hear from us.”
As AUSTRAC tightens its regulatory framework, it is urging all reporting entities to take their AML/CTF obligations seriously. The agency’s efforts aim to safeguard Australia’s financial system while ensuring a fair and transparent industry for compliant operators
