Australian Transaction Reports and Analysis Centre Has Issued Infringement Notices Totaling $75,120 to Cryptocurrency Exchange Cointree

The Australian financial intelligence agency, the Australian Transaction Reports and Analysis Centre (AUSTRAC), has issued infringement notices totaling $75,120 to cryptocurrency exchange Cointree

The Australian financial intelligence agency, the Australian Transaction Reports and Analysis Centre (AUSTRAC), has issued infringement notices totaling $75,120 to cryptocurrency exchange Cointree for failing to submit suspicious matter reports (SMRs) on time.

The agency issued the notices after Cointree voluntarily disclosed it had not met the reporting timeframes mandated by the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act.

“When exchanges fail to comply with their obligations, it ultimately prevents AUSTRAC from effectively performing its role and engaging in early detection and intervention to combat serious crime and terrorism,” said AUSTRAC CEO Brendan Thomas.

SMRs provide AUSTRAC and our law enforcement partners with information about suspected misuse of the financial system, and this information goes on to trigger countless criminal investigations each year.

While noting that the crypto exchange had self-reported the breaches, Thomas warned that if Cointree fails to take “proactive steps to remediate its systems and controls to ensure future compliance,” it would be subject to a much more serious regulatory response.

The Australian agency’s decision to take action against Cointree comes a few months after AUSTRAC acted against 13 remittance and digital currency exchange providers that failed to comply with the dictates of the AML/CTF Act. At the time, Thomas warned non-compliant exchanges that AUSTRAC would be making contact.

“We are now making contact with those non-compliant businesses to advise them that they need to take action to ensure they comply with their obligations,” he said in August.

Magnaly disclosed that the reporting timeframes vary according to the type of suspicious activity. For example, the timeframes for submitting a suspicious matter report for suspected money laundering and terrorism financing are three business days and 24 hours, respectively.

However, he clarified that if a business fails to report suspicious transactions within the specific timeframes, it constitutes a breach.

Moreover, Thomas highlighted that addressing the digital asset sector’s “heightened risk” is a regulatory priority for the agency. He went on to advise entities yet to submit SMRs to take immediate steps to resolve this.

“If you’re not submitting your SMRs on time, it’s likely your systems aren’t up to scratch. It’s imperative that all regulated businesses ensure they have appropriate systems and controls in place to meet their AML/CTF obligations,” Thomas concluded.