Read More about fast-id page

Shufti globally launches webinr-icon - a new kind of identity solution!

Shufti globally launches - a new kind of identity solution!

Read more

AUSTRAC Warns Banks Against Closing Accounts of Crypto Traders

AUSTRIC

AUSTRAC shows full support for the Australian crypto industry and is issuing warnings to banks against closing accounts of virtual assets providers.

Australian Transaction Reports and Analysis Centre (AUSTRAC), the country’s AML regulatory body, has recently stood in favor of the country’s crypto industry by issuing a stern warning to local banks against large-scale de-banking of crypto dealers.

Crypto dealers in Australia have been raising concerns about de-banking from the banking systems because of having involvement in crypto businesses. De-banking, where the financial institutions stop providing services to customers, has become common practice targeting virtual assets providers in Australia.

AUSTRAC has made it clear that the Australian AML and CTF regulations do not mandate banks to evict customers from the country’s banking system just because they are associated with businesses dealing in cryptocurrencies.

“The effect of de-banking of legitimate and lawful financial services businesses can increase the risks of money laundering and terrorism financing and negatively impacts Australia’s economy,” AUSTRAC said in its statement.

AUSTRAC’s Chief Executive, Paul Jevtovic, highlighted that the regulatory bodies do not support the de-banking of crypto operators or terminating business relationships. This practice could soar the risk of money laundering and terrorist financing.

“Although the decision to close an account may remain a necessary risk control, Austrac considers with appropriate systems and processes in place, banks should be able to manage high-risk customers, including those operating remittance services, digital currency exchanges, not-for-profit organizations (NPO), and financial technology (FinTech) businesses,” the regulator said.

Australian banks have become conscious as aftermaths of money laundering or terrorist financing cases pours reputational damages that are unbearable. The Westpac Banking Group became part of headlines back in 2013 when $6 billion funds were laundered through their accounts. While the bank was not found guilty in this case, it portrayed that banks facilitating virtual assets providers can lead to reputational fallout. 

Westpac case was instrumental in making Australian banks oppose crypto services. Currently, when banks identify clients as high risk, they de-bank them, considering the cost of incorporating Enhanced Due Diligence (EDD) to be high.

A spokesman for The Australian Bankers Association said, “A core obligation is for banks to be able to trace and report where the money comes from and where it flows to. Given the level of anonymity in some digital assets and trading platforms, this means it is often not possible for banks to provide a service in compliance with their AML and sanctions obligations.”

The large-scale de-banking has put the Australian cryptocurrency exchanges in danger, 17 bitcoin exchanges closed. Bitcoin businesses are moving out of Australian territory because of concerns regarding virtual assets regulations and tax treatments. The Australian Digital Currency Commerce Association (ADCCA) has also made it clear that the Australian crypto industry may completely disappear if de-banking practices continue.

“AUSTRAC expects banks and all regulated businesses to adopt a case-by-case approach to managing ML/TF (money laundering/terrorism financing) risks. This expectation extends to the importance of continuing to assess the particular risks relating to their business customers in line with the risk-based approach,” AUSTRAC representative said.

Suggested read: AUSTRAC Denounces De-banking Practices To Prevent Financial Crimes

Disclaimer: The views and opinions expressed on this webpage or weblink are those of the author only, and are not necessarily the views or opinions of Shufti Limited. The material and information on this weblink is solely for general information purposes. You should not rely upon the material or information on the website as a basis for making any business or legal decision.

While we endeavor to keep the information up-to-date and/or correct, we make no representations or warranties of any kind, express or implied, or for any purpose about the completeness, accuracy, reliability, suitability, or availability of the contents or information herein. Any reliance on its content is thus entirely at your own risk.

For the avoidance of doubt, Shufti Limited will not be liable for any false, inaccurate, inappropriate, or incomplete information presented herein, and all liabilities with respect to actions taken, or not taken, based on the contents or information herein, or for any loss sustained by you as a consequence are hereby expressly disclaimed by us.

Related Posts

News

Man arrested for money laundering offenses related to COVID-19

A 39-year-old Singaporean man has been apprehended for his suspected involvement in money launder...

Man arrested for money laundering offenses related to COVID-19 Explore More

News

WhatsApp Introduces Fingerprint Authentication For Android

WhatsApp has recently announced that its app can be locked with a fingerprint, now available on A...

WhatsApp Introduces Fingerprint Authentication For Android Explore More

News

OCBC Fines Money Laundering Suspect $19.7million

The Oversea-Chinese Banking Corporation (OCBC) has fined the individuals involved in Singapore’s ...

OCBC Fines Money Laundering Suspect $19.7million Explore More

News

Newsman arrested for credit card theft

A Newport Newsman was arrested due to credit card and identity theft allegations. The arrest was...

Newsman arrested for credit card theft Explore More

News

New Zealand to Introduce New Bill for Public Beneficial Ownership Register

New Zealand has initiated a crackdown against corporate secrecy after the Pandora papers and look...

New Zealand to Introduce New Bill for Public Beneficial Ownership Register Explore More

News

CBUAE Cancels Registration of Insurance Broker for AML Non-compliance

The Central Bank of the UAE (CBUAE) has cancelled Al Fazaa’s registration as an insurance a...

CBUAE Cancels Registration of Insurance Broker for AML Non-compliance Explore More

News

FinTech in Malaysia is Improving Due to Friendly Regulations

Malaysia has taken a user-friendly approach to adapt to financial regulations as it is working to...

FinTech in Malaysia is Improving Due to Friendly Regulations Explore More

News

UK Regulatory Authorities Warns Crypto Firms to Comply with Latest AML Obligations

The UK regulatory department, Financial Conduct Authority (FCA), has warned cryptocurrency platfo...

UK Regulatory Authorities Warns Crypto Firms to Comply with Latest AML Obligations Explore More

News

South Africa Anticipates Removal from FATF Gray List in 2025

The South African government is anticipating that they will address all the FATF international st...

South Africa Anticipates Removal from FATF Gray List in 2025 Explore More

News

“Walk the Talk” – RUSI Calls On FATF to Promote Financial Inclusion

RUSI has called out the FATF for not actively promoting financial inclusion as part of its primar...

“Walk the Talk” – RUSI Calls On FATF to Promote Financial Inclusion Explore More

News

Arizona Bank Used to Funnel 11 Million USD in a Money Laundering Scheme

According to Federal prosecutors, a money-laundering scheme has been successful in funneling $11 ...

Arizona Bank Used to Funnel 11 Million USD in a Money Laundering Scheme Explore More

News

Malta’s Justice Minister Ammends Legal Framework to Lighten Financial Crime Proceedings

Malta’s Justice Minister announces amendments in the court proceedings for financial crimes...

Malta’s Justice Minister Ammends Legal Framework to Lighten Financial Crime Proceedings Explore More

News

Jamaican Senate Approves Order to Combat Money Laundering

The Jamaican Senate recently approved the Proceeds of Crime (DNFBPs)(TCSPs) Order, 2022, which is...

Jamaican Senate Approves Order to Combat Money Laundering Explore More

News

Amazon Warns UK Customers Over Rising Threat of Impersonation Scams

Amazon has cautioned UK customers about the rising threat of impersonation scams via phone calls,...

Amazon Warns UK Customers Over Rising Threat of Impersonation Scams Explore More

News

FinCEN Proposes Extension in Suspicious Activity Reporting Rules

The US Financial Crimes Enforcement Network (FinCEN) issued a Notice of Proposed Rulemaking (NPRM...

FinCEN Proposes Extension in Suspicious Activity Reporting Rules Explore More

News

Biden Increases 50% Budget for FinCEN to Omit Financial Crimes

President Joe Biden of the USA is pushing a plan for a 50% increase in the budget set aside for t...

Biden Increases 50% Budget for FinCEN to Omit Financial Crimes Explore More

News

U.S States Open up to the Idea of Digital IDs in Post Pandemic World

The ID cards that were used by millions of people as proof of their identity may soon become a th...

U.S States Open up to the Idea of Digital IDs in Post Pandemic World Explore More

News

Hong Kong Customs Commissioner Urges to Enhance Supervision in Crypto Exchange

Hong Kong’s Commissioner of Customs and Excise, Louise Ho Pul-shan, has urged to enhance the secu...

Hong Kong Customs Commissioner Urges to Enhance Supervision in Crypto Exchange Explore More

News

Westpac Freezes Executive’s Bonuses Amid Money Laundering Scandal

Westpac’s board will withhold bonuses of all of its senior executives as an ‘interim’ step follow...

Westpac Freezes Executive’s Bonuses Amid Money Laundering Scandal Explore More

News

UK Government Proposes New Cybersecurity Laws

The UK government proposed new laws for cybersecurity last week to increase security standards in...

UK Government Proposes New Cybersecurity Laws Explore More

News

CIBC Fined C$1.3M by Canadian Anti-Money Laundering Authority

Canadian regulatory authorities imposed a $1.3m penalty on the Canadian Imperial Bank of Commerce...

CIBC Fined C$1.3M by Canadian Anti-Money Laundering Authority Explore More

News

SkyCity Entertainment Earmarks $29m for Anticipated AML/CFT Regulations Fine

Australian gaming company, SkyCity Entertainment, has provisioned $29m in anticipation of a civil...

SkyCity Entertainment Earmarks $29m for Anticipated AML/CFT Regulations Fine Explore More

News

Instagram is Adding Age Verification to Protect Minors

Instagram is adding age verification in order to provide a safer online community to the minors. ...

Instagram is Adding Age Verification to Protect Minors Explore More

News

Texans to be Among the Most Affected Nations in Global Cybercrime Operation, Warns FBI

According to the Federal Bureau of Investigation (FBI), Texans are likely to be among nations tha...

Texans to be Among the Most Affected Nations in Global Cybercrime Operation, Warns FBI Explore More

News

Data Breach Exposes 515,000 IDs, More Cases of Synthetic ID Fraud to be Expected?

Hackers broke into the servers at the International Committee of the Red Cross and accessed perso...

Data Breach Exposes 515,000 IDs, More Cases of Synthetic ID Fraud to be Expected? Explore More

News

Danske to face $2 billion fine for money laundering

According to Jyske Bank, Danske will probably be fined around 13.5 billion kroner (around $2 bill...

Danske to face $2 billion fine for money laundering Explore More

News

El Salvador’s Adoption of Bitcoin as Legal Tender Raises ML/TF Risks

El Salvador has become the first country to accept Bitcoin as a legal tender.  On 8 June 2021, El...

El Salvador’s Adoption of Bitcoin as Legal Tender Raises ML/TF Risks Explore More

News

FTX Customers File Class Action Against Bankrupt Crypto Exchange

FTX customers had filed a class action against the bankrupt crypto exchange and its ex-CEO Sam Ba...

FTX Customers File Class Action Against Bankrupt Crypto Exchange Explore More

News

Medical Testing Postpones Money Launderer’s Sentencing

The conviction of Mark Scott, a licensed advocate involved in laundering $400 million for the unp...

Medical Testing Postpones Money Launderer’s Sentencing Explore More

News

Canada Seeks to Digitize ID-Documents for Enhanced Security Measures

Canada, Ontario’s government is working towards digitizing the identity documents and seeks publi...

Canada Seeks to Digitize ID-Documents for Enhanced Security Measures Explore More

News

US Treasury Department Discloses Latest Beneficial Ownership Information (BOI) Guide

The Money Laundering Bureau of the US Treasury Department issued the latest guide to assist small...

US Treasury Department Discloses Latest Beneficial Ownership Information (BOI) Guide Explore More

News

Conveyancers Used for Laundering Millions of Pounds across the UK

Government warns that hundreds of millions of pounds are being laundered by criminals across the ...

Conveyancers Used for Laundering Millions of Pounds across the UK Explore More

News

FINRA Issues its Examination and Risk Monitoring Program Report 2023

FINRA published its 2023 report on its Examination and Risk Monitoring Program, covering all the ...

FINRA Issues its Examination and Risk Monitoring Program Report 2023 Explore More

News

New Zealand to Introduce New Bill for Public Beneficial Ownership Register

New Zealand has initiated a crackdown against corporate secrecy after the Pandora papers and look...

New Zealand to Introduce New Bill for Public Beneficial Ownership Register Explore More

News

China’s Central Bank Fines ICBC & Bank of Chongqing for AML Shortcomings

Chinese banks including industrial and commercial banks of Chongqing have been fined by regulator...

China’s Central Bank Fines ICBC & Bank of Chongqing for AML Shortcomings Explore More

News

Oman’s CMA Initiates Efforts to Improve Anti-Money Laundering Measures

Oman’s Capital Market Authority is sharpening its focus on improving its anti-money laundering an...

Oman’s CMA Initiates Efforts to Improve Anti-Money Laundering Measures Explore More

News

British Columbia Makes Regulatory Change to Combat Money Laundering

The British Columbia government is providing the gambling regulator of the province more independ...

British Columbia Makes Regulatory Change to Combat Money Laundering Explore More

News

Biden’s Administration Announces New Timeline for AML Initiative and Beneficial Ownership Rules

FACT’s anti-money laundering efforts are updated in the Biden Administration’s Spring 2023 Regula...

Biden’s Administration Announces New Timeline for AML Initiative and Beneficial Ownership Rules Explore More

News

Bulgarian Prosecutors Investigate Crypto Lender Nexo for Alleged Illegal Activities

Bulgarian officers have launched an investigation against Nexo as the crypto Lender was involved ...

Bulgarian Prosecutors Investigate Crypto Lender Nexo for Alleged Illegal Activities Explore More

News

Portuguese Banks Restrict Services for Crypto Exchanges, Citing Risky Grounds

Portuguese banks have restricted services of multiple crypto exchange firms operating in the coun...

Portuguese Banks Restrict Services for Crypto Exchanges, Citing Risky Grounds Explore More

News

Thai Police Bust $27M Crypto Scam and Seize Multiple Luxury Properties

In a recent operation, Thai authorities uncovered a $27m crypto scam targeting local investors an...

Thai Police Bust $27M Crypto Scam and Seize Multiple Luxury Properties Explore More

News

Central Bank of Bahamas Calls for Stringent Due Diligence in the Wake of FTX Collapse

The Bahamas’ Central Bank has called for stricter due diligence while moving funds in the w...

Central Bank of Bahamas Calls for Stringent Due Diligence in the Wake of FTX Collapse Explore More

News

FIAU Fines Maltese Investment Fund €300,000 for ‘disregard’ of AML Rules

The FIAU said that Southern Cross Sicav showed ‘disregard’ for its anti-money laundering obligati...

FIAU Fines Maltese Investment Fund €300,000 for ‘disregard’ of AML Rules Explore More

News

Fintech Requires Tight Controls to Mitigate Data Privacy Risks, Treasury Report

As per the new report by the U.S. Department of the Treasury, Fintech requires tight controls to ...

Fintech Requires Tight Controls to Mitigate Data Privacy Risks, Treasury Report Explore More

News

Property Brokers in New Zealand Given Official Warning over AML/CFT Compliance

An eighty-branch real estate agency in New Zealand, Property Brokers, has received their first fo...

Property Brokers in New Zealand Given Official Warning over AML/CFT Compliance Explore More

News

Money Laundering Proceedings Against Pilatus Set Back Indefinitely

Money laundering proceedings against Pilatus Bank and its former top officials will likely be set...

Money Laundering Proceedings Against Pilatus Set Back Indefinitely Explore More

News

MEF Implements New Tax Rules on Commercial Gambling Businesses to Curb Financial Crime

The Ministry of Economy and Finance (MEF) brought about new tax rules on commercial gambling busi...

MEF Implements New Tax Rules on Commercial Gambling Businesses to Curb Financial Crime Explore More

News

Philippines AMLC Releases New Study for Suspicious Transactions Linked to Casino Junkets

The Philippines AMLC has officially published the latest study on suspicious transactions linked ...

Philippines AMLC Releases New Study for Suspicious Transactions Linked to Casino Junkets Explore More

News

Singapore Now Requires Developers to Comply with New AML/TF Regulations

The Singaporean government will implement a new anti-money laundering and anti-terrorism financin...

Singapore Now Requires Developers to Comply with New AML/TF Regulations Explore More

News

“Cryptocurrency Could Become Worthless in Future”, Warns Bank of England

Due to anonymity and the potential risks associated with cryptocurrency, the Bank of England warn...

“Cryptocurrency Could Become Worthless in Future”, Warns Bank of England Explore More

News

Binance Resorts to Shady Crypto Firms as Authorised Options Run Short

Binance, the global crypto exchange leader, retract to shady asset companies as authorised option...

Binance Resorts to Shady Crypto Firms as Authorised Options Run Short Explore More

News

$8.6 Million Worth of Syrian Sanctions Settled by a French Bank

A French bank, Union de Banques Arabes et Françaises has paid the 8.6 million USD for violating o...

$8.6 Million Worth of Syrian Sanctions Settled by a French Bank Explore More

News

Dutch Rabobank Under Investigation Over Suspected AML/CTF Violations

According to the Netherlands’ second largest money lender, Dutch prosecutors are investigating Ra...

Dutch Rabobank Under Investigation Over Suspected AML/CTF Violations Explore More

News

COVID at EURO 2020 Reinforced the Need for Digital COVID Pass

With 2 infected players infiltrating the entire stadium, many are fearing the spread of COVID-19 ...

COVID at EURO 2020 Reinforced the Need for Digital COVID Pass Explore More

News

Pakistan’s State Bank unveils new AML/CFT regulations for Forex Firms

State Bank of Pakistan on Tuesday amended Anti-money laundering (AML) and Counter Financing of te...

Pakistan’s State Bank unveils new AML/CFT regulations for Forex Firms Explore More

News

NSW Government Introduces New Money Laundering Laws To Combat Organised Crimes

The New South Wales government  add new laws to increase the security against the criminal gangs ...

NSW Government Introduces New Money Laundering Laws To Combat Organised Crimes Explore More

News

Germany to Form a new Anti-Money Laundering Agency

Germany is reportedly forming a new AML agency that aims to regulate sanction efforts and money l...

Germany to Form a new Anti-Money Laundering Agency Explore More

News

FATF Calls for Urgent Implementation of Crypto Information Sharing Mechanisms

FATF has published a report to call on the countries to the implementation of travel rules to und...

FATF Calls for Urgent Implementation of Crypto Information Sharing Mechanisms Explore More

News

Denmark’s Gambling Authority Issues Reminder for AML Duties

All licensed businesses are reminded to report suspicious transactions that may be indicative of ...

Denmark’s Gambling Authority Issues Reminder for AML Duties Explore More

News

US State joins international task force targeting COVID-19 investment scams

The Oregon Division of Financial Regulation has recently joined an international enforcement task...

US State joins international task force targeting COVID-19 investment scams Explore More

News

Croatian Finance Ministry Proposes New Bill to Combat Money Laundering

The Croatian Finance Ministry has introduced a new bill for state institutions to monitor the ban...

Croatian Finance Ministry Proposes New Bill to Combat Money Laundering Explore More

News

The State Bank of Vietnam Demands More Freedom and Power to be Granted to the Anti-Money Laundering Bureau

The State Bank of Vietnam (SBV) requested the government to enhance security by providing more fr...

The State Bank of Vietnam Demands More Freedom and Power to be Granted to the  Anti-Money Laundering Bureau Explore More

News

Nexo to Sue Bulgarian State over Money Laundering Allegations

The Bulgarian crypto lending bank, Nexo, revealed that it would file legal action against the Bul...

Nexo to Sue Bulgarian State over Money Laundering Allegations Explore More

News

Compliance Institute of Nigeria (CIN) to Up its Game in Addressing AML/CTF Gaps

With threats of financial fraud emerging across the globe, the Compliance Institute of Nigeria (C...

Compliance Institute of Nigeria (CIN) to Up its Game in Addressing AML/CTF Gaps Explore More

News

Livestreaming Helps Shanghai Police Crack Money Laundering Case

There has been an arrest of a live streamer by Shanghai police who had been tipped off by a live ...

Livestreaming Helps Shanghai Police Crack Money Laundering Case Explore More

News

Americans ‘work from home’ strategy present new targets for hackers

Coronavirus outbreak has forced organizations to let their employees work from home during the ou...

Americans ‘work from home’ strategy present new targets for hackers Explore More

News

US Authorities Government Announce Limitations to Crypto Industry to Combat Money Laundering

The US officials stated they will limit cryptocurrency firms’ operation in the country if t...

US Authorities Government Announce Limitations to Crypto Industry to Combat Money Laundering Explore More

News

Saudi Arabia has Achieved Another Victory in the Battle Against Financial Crimes

Saudi authorities seized $1.06 million from a criminal gang accused of money laundering. The culp...

Saudi Arabia has Achieved Another Victory in the Battle Against Financial Crimes Explore More

News

Gary Gensler- Former CFTC Chair to Join President-Elect Biden’s team as Financial Expert.

A crypto-savvy and a CFTC (Commodity Futures Trading Commission) chair from President Obama’s gov...

Gary Gensler- Former CFTC Chair to Join President-Elect Biden’s team as Financial Expert. Explore More

News

Investment Scams Rising Through Fake Celebrity Endorsements

Financial fraud through celebrity endorsement is becoming a primary concern as one in six firms o...

Investment Scams Rising Through Fake Celebrity Endorsements Explore More

News

Taiwan and Singapore Strengthen AML Regulations for Virtual Asset Providers and Banks

Taiwan and Singapore enhance Anti-Money Laundering (AML) regulations for virtual asset service pr...

Taiwan and Singapore Strengthen AML Regulations for Virtual Asset Providers and Banks Explore More

News

EUR 27 Million Worth Crypto Assets Seized by the NCA in Money Laundering Crackdown

NCA seizes crypto assets worth £27m last year in a major money laundering crackdown Although inst...

EUR 27 Million Worth Crypto Assets Seized by the NCA in Money Laundering Crackdown Explore More

Take the next steps to better security.

Contact us

Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

Contact us

Request demo

Get free access to our platform and try our products today.

Get started