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15/07/24
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AUSTRAC Reports Criminals’ Preference for Crypto in Australia
A report on money laundering released by the Australian Transaction Reports and Analysis Centre (AUSTRAC) in recent times shows that cryptocurrency is one of the most common types of payment methods when it comes to costliest scams to Australians carried out through phone calls, social media and email.
It noted that using digital currency as a value transfer mechanism will lead to an increase in vulnerability related to money laundering within the coming three years. The expansion of the use of digital currency for legitimate use will increase opportunities for criminal use.
“Businesses and sectors with limited or no AML/CTF oversight and high acceptance of cash payments are particularly vulnerable to criminal exploitation, including the transfer of cash to real estate, cryptocurrency, luxury and high-value goods,” reads the report.
The financial intelligence government agency noted the likelihood of seeing more exploitation of asset-backed stablecoins and mainstream digital currency because of their price stability, high accessibility and ease and speed with which they can be converted to other coins and fiat currency.
Likewise, as more people continue to adopt stablecoins and mainstream digital currency, bad actors are likely to have greater opportunities to cover up the origins of criminal proceeds. “It would also likely reduce the need for criminal use of regulated service providers to convert proceeds to fiat currency. This would likely raise the risk level of money laundering to high,” reads the report.
Some local criminals in Australia prefer stablecoins due to their perceived stability and use as a hedge against price volatility; criminal groups across the country are likely to prefer asset-backed stablecoins to launder illegal funds.
Hence, according to the report, adopting proposed regulatory reforms aligning the country’s regulation of digital currency exchanges with FATF requirements will help reduce money laundering vulnerability in the sector.
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