AUSTRAC pledges digital services crackdown

The news: Australia's financial intelligence agency AUSTRAC has announced its regulatory priorities for the year ahead, including plans to crack down on digital services and bolster the financial system’s resilience to money laundering, terrorism financing and other serious crime.

The context: In addition to the agency's "enduring priorities", AUSTRAC said it will increase its regulatory activities in the areas of digital currency exchanges, payment platforms, bullion and non-bank lenders and financiers. The new priorities for 2024 are a result of a "rapid and significant growth" in these sectors, as well as concerns about the significant variation in compliance with anti-money laundering and counterterrorism financing laws between different companies operating in these sectors.

What they said: AUSTRAC's Acting CEO Pete Soros said: “These priorities signal our ongoing intent to work with businesses to embed a culture of vigilance, ensuring everyone at every level is aware of the threat of financial abuse and criminal exploitation.”

“Criminals target businesses with weak anti-money laundering settings, which is why AUSTRAC’s regulation, through education and supervision, is crucial to safeguarding Australia’s communities and financial systems from financial harm."