A new report from the Australian Transaction Reports and Analysis Centre (AUSTRAC) highlights an increase in criminal activities involving cryptocurrencies. This has led to calls for stricter regulations and better international cooperation to combat money laundering.
The 2024 AUSTRAC Money Laundering National Risk Assessment details the methods used by criminals to launder money, noting a significant rise in the use of digital currencies, digital currency exchanges, and unregistered remittance services.
Cash Still Preferred for Money Laundering
Despite the growing digitization globally, most money launderers continue to use traditional methods such as cash, real estate, and luxury goods for illegal fund transfers. These channels are rated as having a “very high” risk factor, while digital currencies are given a “high” risk factor. AUSTRAC expects the criminal use of cryptocurrencies to increase due to their anonymity and quick transaction speeds.
Key Findings
The report highlights:
Increasing criminal use of digital currencies, digital currency exchanges, unregistered remittance services, and bullion dealers.
The growing reliance on crypto for its anonymity and fast transaction capabilities.
Recommendations
In response, AUSTRAC emphasizes the need for all crypto exchanges to register under the Anti–Money Laundering and Counter-Terrorism Financing (AML/CTF) Act. The report also stresses the importance of continually updating regulatory measures and fostering international cooperation to effectively tackle money laundering activities involving cryptocurrencies.
The agency predicts that as the legitimate use of digital currencies expands, so will opportunities for criminal exploitation, highlighting the need for vigilant and evolving regulatory frameworks.
Summary Review: AUSTRAC’s findings highlight a pressing need for tougher regulations and international cooperation to combat the rising threat of cryptocurrency–related crimes. With the increasing use of digital currencies for money laundering due to their anonymity and speed, it is crucial for regulatory frameworks to evolve continuously. Ensuring that all crypto exchanges register under the AML/CTF Act and fostering global collaboration will be key to effectively addressing these emerging risks and safeguarding the integrity of the financial system.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
