ReportWire

Tag: austrac

  • AUSTRAC Warns Payment Providers over Child Abuse Payments

    The Australian Transaction Reports and Analysis Centre (AUSTRAC) announced that it has warned online payment providers over recent suspicions of payments for child sexual exploitation. The body has therefore asked payment companies to tighten their controls and remain vigilant.

    AUSTRAC Identified Risky Payments

    In a letter to the online payment platforms sector, the AUSTRAC explained that its regulatory operations team discovered “a number of customers suspected to be making payments for child sexual exploitation.”

    The discovery came as part of a recent supervisory campaign seeking to detect child sexual exploitation activities among the customer base of certain payment providers.

    The AUSTRAC elaborated that the team identified other issues too, including low suspicious matter reporting, poor transaction monitoring and failures to identify and address higher-risk customers.  

    As a result of the investigation, the AUSTRAC asked WorldRemit to appoint an external auditor. At the same time, it also sent a letter of concern to five businesses, while continuing to investigate several others.

    The Failures Are Inexcusable, AUSTRAC Says  

    Brendan Thomas, AUSTRAC’s chief executive officer, commented on the discoveries, saying that some payments, unfortunately, were likely tied to exploitation.

    The team conducted their own transaction monitoring simulation, identifying suspicious customer behaviour and transfers that were very likely payments for child sexual exploitation.

    Brendan Thomas, CEO, AUSTRAC

    Thomas noted that the suspicious client accounts should have been closed immediately due to the severe risk they posed. The accounts in question have now been referred to the Australian Border Force and law enforcement.

    Thomas added that the payment providers’ failure to identify some of these risky accounts is inexcusable.

    Failure to effectively monitor for suspicious transactions and to submit timely reports means we miss out on critical intelligence our customs and border, and law enforcement agencies can use to catch the offenders and other criminals.

    Brendan Thomas, CEO, AUSTRAC

    The AUSTRAC noted that there are 90 payment platforms operating in Australia, 50 of which are also registered as remitters. All of these businesses are required to comply with Australia’s AML and CTF laws.

    Fiona Simmons

    Source link

  • Australia Plans Fines Up To 10% Of Turnover For Crypto Rule Breaches

    Australia plans to hit digital asset platforms with penalties of up to 10% of annual turnover if they breach new rules, under draft legislation released on Thursday.

    The proposal requires exchanges and other operators to secure an Australian Financial Services Licence. Firms that fail to act honestly and fairly, or that engage in misleading conduct and unfair contract terms, would face the greater of three penalties, A$16.5m (US$10.9m), three times the benefit gained, or 10% of annual turnover.

    These rules build on existing anti-money laundering obligations overseen by AUSTRAC and complement the Australian Taxation Office’s scrutiny of crypto transactions for capital gains tax.

    The ATO can already impose fines worth up to three times the amount evaded or pursue prison terms in cases of serious breaches.

    The draft law will remain open for consultation until Oct. 24. It marks one of the most significant moves yet to regulate an industry that includes major global players such as Coinbase and Kraken.

    Australia’s regulators have repeatedly warned about the risks of surging retail crypto investment. The nation’s securities and prudential watchdogs, as well as the central bank, have pressed for tougher standards. In August, financial crimes agency AUSTRAC ordered Binance’s local arm to appoint an external auditor over money laundering and terrorism financing concerns.

    Treasury said the new regime will bring digital asset and tokenized custody platforms under the Corporations Act, extending consumer protections and formal licensing requirements.

    Smaller players will not face the full burden. Platforms that hold less than A$5,000 per customer and process under A$10m in annual transactions will be exempt.

    The effort reflects a balancing act, with policymakers seeking to protect investors without stifling innovation. Industry feedback over the next month will shape the final framework before it moves toward parliament.

    Separately, the Australian Securities and Investments Commission last week granted class relief to intermediaries distributing stablecoins issued by licensed AFS providers. The measure, which runs until June 2028, exempts them from separate market, clearing and settlement licences when handling stablecoins from approved issuers.

    The relief is the first of its kind in Australia, signalling regulators’ willingness to provide flexibility where oversight is already embedded in existing financial licences.

    Read original story Australia Plans Fines Up To 10% Of Turnover For Crypto Rule Breaches by Shalini Nagarajan at Cryptonews.com

    Source link

  • AUSTRAC and SkyCity Adelaide Agree to $67M Penalty Proposal

    AUSTRAC and SkyCity Adelaide Agree to $67M Penalty Proposal

    Gaming and entertainment company that provides sports, amusement, and recreation services, SkyCity Adelaide Pty Ltd (SkyCity), and the Australian Transaction Reports and Analysis Centre (AUSTRAC) have filed joint submissions with the Federal Court of Australia. 

    Their proposed AU$67 million penalty mentioned in the joint submissions was deemed appropriate in the context of the casino’s contravention of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

    SkyCity Admitted to Breaching Parts of the AML/CTF Act

    The court has set the date of the hearing for June 7, when Justice Lee will ponder the parties’ proposed settlement and establish whether the proposed penalty amount would suffice in all the circumstances. 

    When reaching the agreement, SkyCity admitted that it did not fully comply with the AML/CTF Act. 

    The company explained its AML/CTF Programs failed to meet the requirements of the AML/CTF Act and Rules, in contravention of section 81.

    SkyCity also admitted to not effectively completing ongoing customer due diligence regarding higher-risk customers as well as customers who were completing transactions via higher-risk channels, which went against section 36.

    High-Risk Practices “Allowed to Continue Unchecked For Many Years”

    As argued by AUSTRAC’s chief executive officer, Brendan Thomas, they “took this action out of concern” that SkyCity’s conduct meant that a series of high-risk customer relations, behaviors, and practices were allowed to carry on “unchecked for many years.”

    Thomas called the action an important reminder for the gaming industry and casinos to take all of their AML/CTF obligations seriously and keep a close eye on all risks regarding money laundering and terrorism financing.

    In March, the Australian Government agency responsible for detecting and disrupting criminal abuse of the financial system and keeping communities safe from organized crime launched an AML probe into Bet365’s Hillside brand.

    At the end of last May, South Australian Liquor and Gambling commissioner Dini Soulio required SkyCity Adelaide to appoint an independent expert to revise its AML and CTF programs, according to Section 10 of the Gambling Administration Act 2019, 

    The decision was expected to provide an “independent perspective” regarding casino’s AML and CT financing programs while also adding an extra layer of assurance. 

    The independent expert was also asked to conduct similar procedures in relation to the minimization of gambling harm.

    The SkyCity Entertainment Group has over 3,400 employees based in Australia and New Zealand and also owns and operates various Auckland, Hamilton, and Queenstown casinos.

    Melanie Porter

    Source link