AUSTRAC Gains New Powers to Target High-Risk Financial Products
Home Affairs Minister Tony Burke has announced legislative changes that will empower the Director-General of the Australian Transaction Reports and Analysis Centre (AUSTRAC) to restrict or ban financial products and services deemed high risk for money laundering.
AUSTRAC CEO Brendan Thomas welcomed the move, emphasizing that the agency would now be able to act faster in tackling emerging threats such as cryptocurrencies.
“We still see an unacceptable level of money laundering risk through some channels. Cryptocurrency transactions are increasingly being integrated into money laundering schemes, and crypto ATMs pose even greater risks due to the ability to transfer funds quickly and almost anonymously,” Thomas said.
Crypto ATMs Under Scrutiny
Rapid Growth Raises Alarms
According to AUSTRAC’s working group:
- The number of crypto ATMs in Australia has surged from 23 to 2,000 in just six years.
- These machines now handle around 150,000 transactions annually, worth over $275 million.
- A staggering 85% of active users are either victims of fraud or have been coerced into transferring funds.
- Users aged 50–70 account for nearly 72% of all transactions, making them the most vulnerable group to financial abuse.
AUSTRAC considers older Australians to be at particularly high risk of exploitation. If the proposed legislative changes are passed, the agency will be able to limit or entirely prohibit the use of such devices across the country.
In September 2025, the Australian government introduced a bill to regulate the crypto industry more comprehensively. The new powers granted to AUSTRAC mark another significant step toward tightening oversight and reducing the financial crime risks associated with digital currencies.
