AUSTRAC has issued Cryptolink an infringement notice of $56,340 and accepted a court-enforceable undertaking to address significant anti-money laundering and counter-terrorism financing (AML/CTF) deficiencies. The action follows AUSTRAC’s Crypto Taskforce, identifying late reporting of large cash transactions and weaknesses in Cryptolink’s risk assessment processes.

According to AUSTRAC CEO Brendan Thomas, the measures are designed to ensure critical intelligence “does not slip through the cracks” and to strengthen AML/CTF controls in one of Australia’s highest-risk channels ... crypto ATMs.

As part of the undertaking, Cryptolink will engage independent third-party reviewers to verify that all required threshold transactions have been reported, assess controls for large cash transactions, and review the company’s AML/CTF risk assessment framework. AUSTRAC’s action follows extensive engagement with crypto ATM operators since late 2024, with investigations revealing that up to 85% of transactions by top users were linked to scams or money mule activity. The regulator reaffirmed its commitment to working with digital currency providers to harden the sector against criminal exploitation — warning that non-compliance will result in firm regulatory action.

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