- Australia labels crypto a top risk in the biggest money laundering crackdown ever.
- AUSTRAC shifts focus toward real risks, not just checking compliance boxes.
- New plan adds real estate, lawyers, and cash sectors under strict AML rules.
Australia is making big changes to how it fights financial crime. On Wednesday, the country’s financial intelligence agency, AUSTRAC, announced new plans to tackle money laundering. Now they have added crypto to the list of the greatest threats.
AUSTRAC CEO Promises Crackdown on Real Crypto and Cash Laundering Risks
First, the CEO of AUSTRAC, Brendan Thomas, has announced that the agency is now going to pay more attention to the actual risks and harms. He said that the new proposal is the largest change to Australian anti-money laundering (AML) laws in a generation. This implies that the government is desirous of stricter regulations and harsher auditing.
According to Thomas, in his statement, the agency will not spend much time in the agency simply checking boxes. Rather, they will be oriented towards the identification of the real problems. He stated that the leading concerns are digital currency exchanges and virtual asset services. Such platforms enable money to be transferred quickly, across borders, and frequently in secret.
AUSTRAC is planning to focus on those industrial sectors with the highest likelihood of money laundering activities this year. Therefore, crypto is not the only one. The amount of cash remains a huge risk as well. According to Thomas, cash is being used less in Australia, but there is still more than $100 billion in circulation. Criminals prefer to use cash since it is difficult to trace.
AUSTRAC will also consider what it refers to as the tranche 2 industries along with crypto and cash. These are real estate agents, lawyers, accountants, trust service providers, and precious metal dealers. Currently these groups do not have numerous rules; however, this will change in the near future.
In the coming year, AUSTRAC intends to introduce approximately 80,000 new businesses under the AML laws. The agency is expanding in size and upgrading its technology to prepare. Thomas added that they are engaging business now so that they have an idea of what to expect.
AUSTRAC Vows Clearer Rules, Pushes Firms to Improve Now
According to Thomas, AUSTRAC will provide clear guidelines on what the sectors are supposed to do. They prefer that everybody should be improving, not that they would improve and implement the rules at a later date. This implies that the agency will not only review the risks being taken by individual firms but also entire industries.
AUSTRAC is also enhancing its intelligence facilities. They wish to know the sectors that are not doing enough in terms of preventing money laundering. The information will assist them in making decisions on who to check more frequently and when they should take action.
To clarify the situation, AUSTRAC stated on its official site. It describes the implications of the new rules for businesses already in the scope of AML laws and those that will soon join. Thomas indicated that he wants companies to lead the way and give good examples to other industries.
Ultimately, Australia desires high standards. Thomas explained that this radical shift is necessary to ensure the financial system of the country is secure. His description of it was the biggest AML overhaul in a generation. He further assured that AUSTRAC will work hard to ensure that it gets it right.
The trend may continue with other countries joining Australia in regulating the crypto use. At least, the current position of Australia is loud and clear: digital money needs to be safe, secure, and crime-free.
The post Australia Names Crypto Biggest Risk in Money Laundering Crackdown appeared first on Live Bitcoin News.
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