Australian-based financial intelligence unit AUSTRAC has penalized crypto exchange Cointree with a fine of $75,129 for failing to disclose suspicious matter reports (Or SMRs), according to an AUSTRAC media release. This comes after Cointree voluntarily revealed that it failed to meet reporting timeframes as set by the Anti-Money Laundering and Counter Terrorism Financing Act.
“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,” said AUSTRAC CEO Brendan Thomas.
Brendan Thomas also emphasized the importance of timely reporting. “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.”
A previous report by AUSTRAC titled the Money Laundering in Australia National Risk Assessment identified DCEs, or Digital Currency Exchanges, as highly vulnerable to money laundering due to the speed, global network, pseudonimity, and ability to transfer money from and to different countries without any visibility.
Companies are supposed to disclose SMRs within three days for instances of suspected money laundering and within 24 hours for suspected terrorism funding. Cointree has paid the fine in full, with acknowledgment from AUSTRAC in the media release that this payment concludes the matter with no admission of liability for Cointree.
