ATM-based money laundering issues rise, AUSTRAC penalizes Cryptolink for anti-money laundering breaches, suggesting greater regulation of crypto compliance.

The Analysis Centre and the Australian Transaction Reports have issued an AU$56,340 (US $36,000) action warning and agreed to a legally enforceable commitment to correct noncompliance. It has fined cryptocurrency provider Cryptolink for violating anti-money laundering and counterterrorism finance rules.

The Crypto Taskforce of AUSTRAC found flaws in Cryptolink's risk assessment procedures along with delayed reporting of important transactions in currencies. According to the agency, the steps were taken to prevent important intelligence from being lost as a result of lax compliance.

According to AUSTRAC Chief Executive Brendan Thomas, the company's processes are strengthened, while previous flaws are fixed by the combined enforcement package. The actionable undertaking requests confirmation that Cryptolink has strengthened its AML/CTF processes and strengthened its risk evaluations, while the breach notice raises previously reported non-compliance.

Thomas also stated that cryptocurrency ATMs are now one of Australia's biggest risk channels for money laundering, as scammers regularly use them to hide the earnings of scams. As well, 85% of transactions made by the top 90 cryptocurrency ATM users involved money laundering or illegal activity. He added that AUSTRAC warned to take action if providers didn't take such seriously, but it would still work with a legal digital currency exchange.

Cryptolink has paid the whole fine and fully cooperated with the authorities. According to AUSTRAC, signing the infringement notice is not considered as accepting responsibility. Also, to guarantee compliance with AUSTRAC rules, Cryptolink checks major financial transaction processes, analyzes its money laundering and financing of terrorism risks, and must employ independent reviewers to verify reporting efficiency.