AUSTRAC says it will be intensifying its scrutiny of popular payment platforms and digital currency exchanges, including Binance and Swyftx. 

The move is aimed at addressing concerns over poor compliance within the digital services sector, which has witnessed rapid proliferation.

AUSTRAC's acting CEO, Pete Soros, says early engagement with these platforms is needed to prevent their misuse by criminal groups. 

This crackdown is part of AUSTRAC's broader regulatory priorities statement for 2024. 

The watchdog has expressed apprehension regarding the significant disparities in compliance with anti-money laundering and counterterrorism financing (AML/CTF) laws among different companies in this sector. 

Additionally, AUSTRAC will focus on high-risk areas like banking, gambling, and remittance services, along with bullion and non-bank lenders and financial providers.

Notably, Perth Mint, Australia's leading gold bullion supplier, recently entered into an enforceable undertaking with AUSTRAC to rectify its AML/CTF compliance following multiple violations.

While AUSTRAC targets specific sectors, Soros emphasised that the regulator would maintain engagement across all industry sectors. 

He stressed the importance of avoiding off-the-shelf compliance solutions, urging boards to ensure that third-party services align with Australian legal standards.

Non-compliant companies face substantial fines, potentially in the millions of dollars. AUSTRAC has imposed significant penalties in recent years, particularly on non-compliant gambling companies. 

Tabcorp faced a $45 million penalty in 2017, while Westpac settled for a historic $1.3 billion in 2020. Crown Resorts received a $450 million penalty in 2023, and SkyCity Entertainment set aside $45 million for potential penalties related to AML/CTF breaches.