Minister for Home Affairs, Mr Tony Burke, will seek to introduce a new power enabling the AUSTRAC CEO to restrict or prohibit certain high-risk products, services or delivery channels.
The amendment would give the AUSTRAC CEO additional options to reduce money laundering risks associated with high-risk products.
AUSTRAC CEO, Brendan Thomas, welcomes these changes and said if Parliament passes the law, AUSTRAC will be ready to use them.
"We're still seeing an unacceptable risk of money laundering across some channels," Mr Thomas said.
"Having a power like this enables the CEO to adapt to the evolving risk environment in more responsive ways.
"For example, 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."
"This is a product that is multiplying quickly - six years ago there were 23 machines in operation. Three years ago there were 200."
"When we established the Crypto Taskforce at the end of last year there were 1,200. That number has now risen to 2,000."
AUSTRAC's Crypto Taskforce estimated that almost 150,000 transactions occur annually and about $275 million is being moved through crypto ATMs in Australia each year.
The majority of high value crypto ATM transactions were directly associated with scams and money mules with large volumes of money going to wallets in high-risk jurisdictions.
In a sample of 90 of the most prolific crypto ATM users across Australia, AUSTRAC and its law enforcement partners found 85 per cent were scam victims or money mules who had been tricked or coerced into moving money.
In addition to this, people aged 50-70 are the biggest crypto ATM users and account for almost 72 per cent of transactions by value.
They are also the most vulnerable to scams.
The AML/CTF regime controls money laundering risks by requiring businesses to undertake effective transaction monitoring and customer due diligence, submit transaction threshold and suspicious matter reports, and manage transaction limits.
"Organised criminals continue to find new and creative ways to launder money, making it harder for these controls to work."
"I welcome the Minister's announcement to equip AUSTRAC with powers to better protect the community."
More detail about the proposed amendments will become available in due course.
