Government warns of crypto money laundering surge, pledges to beef up AUSTAC powers
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The news: Home Affairs Minister Tony Burke has unveiled beefed up AUSTRAC powers to restrict high-risk products, singling out crypto ATMs as a major target.
Speaking at the National Press Club on Thursday, Burke announced new powers to crack down on serious crime syndicates using crypto ATMs to launder money and finance terrorism.
The context: The plan, which would need to pass parliament, includes extra AUSTRAC powers to disrupt so-called ‘mule accounts’, legitimate bank accounts taken over by criminals — often by purchasing or renting them from international students or other visa holders.
Burke said AUSTRAC estimated 85% of transactions sent by major users of the devices, which are commonly found in convenience stores, involve the proceeds of scams or money mule activity.
“I want AUSTRAC to have the power to restrict, or if it decides, to prohibit high risk products. Be in no doubt crypto ATMs are a high risk product,” Burke said.
The home affairs minister singled out international students as a major risk for ‘mule accounts’, saying scammers often offered them money before their departure in exchange for their bank details.
That meant activity spiked in accounts which had previously not been used for crypto exchanges, with roughly 22,000 mule accounts closed by Australian banks over the last financial year.
Burke said the speech intended to mark a public effort to warn international students, and the public more broadly, of the threat.
What they said: “If you are offered to hand over your bank details, not only is it a crime, not only are you breaking the law in doing that, but you're also creating a situation where you are probably providing a means for child exploitation, for drug trafficking, for some of the worst elements of organised crime,” Burke said.
AUSTRAC chief executive Brendan Thomas said he would welcome Parliament passing the changes, warning organised criminals were finding “new and creative ways” to launder money.
“Crypto transactions are becoming integrated into money laundering methodologies and crypto ATMs present even more risks due to the ability to turn cash into digital currency that can be sent instantly and virtually anonymously across the globe,” he said.
The sources: Tony Burke speech, AUSTRAC statement
