AUSTRAC Fines Crypto Exchange Cointree for Reporting Failures

The Australian Transaction Reports and Analysis Centre has issued infringement notices totaling $75,120 to cryptocurrency exchange Cointree for failing to submit suspicious matter reports on time.

Cointree Fined Despite Self-Reporting

The Australian financial intelligence agency, the Australian Transaction Reports and Analysis Centre (AUSTRAC), has issued infringement notices totaling $75,120 to cryptocurrency exchange Cointree for failing to submit suspicious matter reports (SMRs) on time. The agency issued the notices after Cointree voluntarily disclosed it had not met the reporting timeframes mandated by the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act.

AUSTRAC CEO Brendan Thomas justified the move, saying exchanges that fail to comply deny his agency the opportunity to tackle such suspicious activity.

“SMRs provide AUSTRAC and our law enforcement partners with information about suspected misuse of the financial system, and this information goes on to trigger countless criminal investigations each year,” Thomas said.

While acknowledging Cointree’s decision to self-report the breaches, Thomas warned the crypto exchange would be subject to a much more serious regulatory response if it fails to take “proactive steps to remediate its systems and controls to ensure future compliance.”

The Australian agency’s decision to take action against Cointree came a few months after AUSTRAC acted against 13 remittance and digital currency exchange providers that failed to comply with the dictates of the AML/CTF Act. At the time, Thomas warned non-compliant exchanges that AUSTRAC would make contact.

Under Australian regulations, regulated businesses must submit SMRs within specific timeframes: within three business days for suspected money laundering and within 24 hours for suspected terrorism financing. Failing to do so constitutes a breach.

Meanwhile, Thomas disclosed that addressing what he termed the digital asset sector’s “heightened risk” is AUSTRAC’s regulatory priority. He urged entities yet to submit SMRs to take immediate steps to resolve this.

“If you’re not submitting your SMRs on time, it’s likely your systems aren’t up to scratch. It’s imperative that all regulated businesses ensure they have appropriate systems and controls in place to meet their AML/CTF obligations,” Thomas said.