AUSTRAC Imposes Penalty on CryptoLink for AML Framework Lapses
Caroline Bishop Oct 31, 2025 03:39
AUSTRAC fines CryptoLink for late reporting and AML weaknesses, urging enhanced compliance in Australia's burgeoning crypto ATM sector.
Australian financial intelligence agency AUSTRAC has issued a penalty to CryptoLink, a crypto ATM operator, following the discovery of significant lapses in its Anti-Money Laundering (AML) framework. The action underscores AUSTRAC’s commitment to ensuring stringent compliance among crypto operators in Australia.
AUSTRAC's Infringement Notice
CryptoLink was fined AU$56,340 (approximately US$37,085) after AUSTRAC's Crypto Taskforce identified late reporting of large cash transactions and weaknesses in the company’s AML protocols. The infringement notice, as reported by Cryptonews, is designed to ensure that critical intelligence does not go unnoticed. AUSTRAC CEO Brendan Thomas emphasized the importance of robust risk assessments and enhanced AML/CTF controls in an official statement.
Risks Associated with Crypto ATMs
Crypto ATMs in Australia have been identified as high-risk channels for money laundering activities. The country has seen a notable increase in Bitcoin ATM installations, growing from approximately 1,608 in August 2024 to over 2,000 by 2025, according to CoinTimeATM data. Recent investigations by AUSTRAC revealed a "hidden world of scams and dodgy dealings" associated with these kiosks, highlighting the sector's vulnerability to illicit activities.
Enforcement and Compliance Measures
In response to these findings, AUSTRAC has mandated CryptoLink to engage third-party reviewers to validate its transaction reporting and assess its AML and terrorism financing risk assessments. The agency is taking proactive measures to safeguard the digital currency sector from exploitation, with Thomas stating that AUSTRAC will enforce compliance rigorously.
CryptoLink has reportedly cooperated fully with AUSTRAC, settling the infringement notice in full. The company is now tasked with implementing effective controls for large cash transactions to prevent future lapses. This development highlights the ongoing regulatory challenges faced by crypto operators and the need for continuous improvement in compliance measures.
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