The Australian Transaction Reports and Analysis Centre (AUSTRAC), a financial intelligence government agency, reported increased criminal use of cryptocurrencies and related services in its latest report on money laundering.
The 2024 AUSTRAC Money Laundering National Risk Assessment detailed the methods criminals use to launder money — citing a notable increase in the criminal use of digital currencies, digital currency exchanges, and unregistered remittance services.
Cash remains king of money laundering
Despite global digitization, most money launderers prefer to use traditional channels for illicit transfer of funds — cash, real estate and luxury goods.
As shown above, the aforementioned traditional channels were awarded a “very high” risk factor, while digital currencies were given a comparatively lower “high” risk factor. However, AUSTRAC anticipates an increase in the criminal use of cryptocurrencies owing to greater anonymity and faster speed of transactions.
The report's key findings indicated:
“Criminal use of digital currency, digital currency exchanges, unregistered remitters and bullion dealers is increasing.”
Criminals banking on crypto anonymity and speed
As a result, the Australian agency reiterated the need for crypto exchanges to register with AUSTRAC under the AML/CTF Act.
The report further shared its perspective on the crypto ecosystem, stating:
“The use of digital currency as a value transfer mechanism will pose an increasing money laundering vulnerability over the next three years. As the use of digital currency expands for legitimate use, opportunities for criminal use will also increase.”
The report also underscored the need for continuous adaptation of regulatory measures and international cooperation to effectively combat money laundering activities involving crypto and digital assets.
The Australian government recently implemented a ban on using crypto and credit cards for online gambling.
Companies failing to comply with the new Australian rules could face fines of up to approximately 234,750 Australian dollars ($155,000).
Kai Cantwell, the CEO of Responsible Wagering Australia, an independent organization for Australian-licensed gambling service providers, believes that the move makes it easier for people to control themselves.
“This is an important measure to protect customers, making it easier for people to stay in control of their own gambling behavior," he added.