AUSTRAC issued infringement notices of $75,120 to digital currency exchange provider Cointree Pty Ltd for the alleged failure to submit suspicious matter reports (SMRs) to AUSTRAC on time.
The action came after Cointree voluntarily disclosed it had not met the reporting timeframes required by the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).
AUSTRAC CEO Brendan Thomas said that failing to submit SMRs on time denies AUSTRAC and its law enforcement partners the opportunity to act on the information in a timely manner.
"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," Mr Thomas said.
"We take timely SMR reporting seriously because these reports form the backbone of our intelligence function.
"We need to action these reports as soon as possible, which is why the timeframes are put in place - they allow us to move with pace and alert our partners to suspected criminal conduct.
"In this case, Cointree has fully co-operated with AUSTRAC in self-disclosing the breaches and is taking proactive steps to remediate its systems and controls to ensure future compliance.
"Without these steps, Cointree may have been subject to a much more serious regulatory response," he said.
In 2024, AUSTRAC released the Money Laundering in Australia National Risk Assessment which identified the digital currency exchange (DCE) sector as being vulnerable to money laundering due to its speed, global reach, pseudonymity and ability to facilitate funds flows to and from foreign jurisdictions with low visibility.
"The DCE sector is undergoing rapid growth and we have significant concerns about some DCE's capacity for and commitment to AML/CTF compliance.
"Addressing heightened risk in the sector is a regulatory priority for AUSTRAC and we are focusing on DCE compliance across 2025."
Regulated businesses need to submit their SMRs within days of forming a suspicion otherwise it constitutes a breach. Specifically, within 3 business days for suspected money laundering and within 24 hours for suspected terrorism financing.
"My message to DCEs, and the broader reporting community, is to build in processes that allow you to develop quality reports and get them to AUSTRAC on time," Mr Thomas said.
"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."
The company has paid the amount in full. AUSTRAC acknowledges that payment does not constitute an admission of liability, the payment concludes this matter.
Infringement notices issued by AUSTRAC are available on our website.
