AUSTRAC Puts CryptoLink on Notice Over Weak AML Framework

AUSTRAC Strengthens Oversight After CryptoLink AML Framework Lapses

The regulator of financial intelligence (AUSTRAC) has fined crypto ATM operator CryptoLink for the failure to fulfill anti-money laundering requirements. The agency has made an infringement notice of AU$56,340 following the detection of gaps in the AML framework system used by the company and non-disclosure of big transactions on time. This is one of the aspects that AUSTRAC seeks to enhance compliance throughout the sector as part of its wider crackdown on financial crime.

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CryptoLink is Under regulatory scrutiny over AML weaknesses.

The infringement notice was issued by AUSTRAC due to lack of reporting of its cash transactions by CryptoLink as identified by its Crypto Taskforce. The taskforce found out that the business had not enforced proper anti-money laundering and counter-terrorism financing measures. The compliance failure and internal governance systems had to be improved by the Australian regulator.

The agency said the enforcement measure was a result of intensive interaction with  ATM operators since the end of 2024. Regulators discovered that the delays in reporting in CryptoLink may impair the transmission of important financial intelligence. The infringement notice was employed to make sure that the usable intelligence does not fall into the gaps in reporting procedures.

CryptoLink has made the full payment of the fine of AU$56,340 but now it will have to go through more regulation. AUSTRAC agreed to a court binding undertaking to ensure that the company has enhanced its AML and CTF system. The regulator stressed that the move is required to cut and dry the digital currency industry against misuse by criminals.

AUSTRAC Warns of Risks in Crypto ATM Business.

One of the greatest-risk money laundering channels as identified by the AUSTRAC is the crypto ATMs in Australia. These machines have been found to be used by criminals to transfer illegal money and defraud people. The Crypto Taskforce discovered that approximately 85% of the transactions made by frequent users of crypto ATMs contained some red flags of scam or mule.

The agency observed that the number of installations of crypto ATMs had risen, exposing them to illegal activities. There were approximately 1,608 Bitcoin ATMs in Australia in August 2024, and almost 2,000 by the end of 2025. With the increased activity, enforcement assumed the top priority of the AUSTRAC to ensure that the financial systems were not misused and to enhance transparency in transactions.

The flaws in CryptoLink in the AML system put it directly under the supervision of compliance. It needed external auditors with whom to agree on the fact that all threshold transactions were reported accordingly. Such reviewers will evaluate whether the risk assessment and internal controls that CryptoLink has will be up to the regulatory standards.

Enhancing Oversight and Sector Compliance.

CryptoLink should prove that it has put the right measures in place to control the large cash transactions under the enforceable undertaking. It should also enhance its AML and terrorism financing risk assessment to comply with the expectations of the compliance requirements. The review process will make sure that all the controls required are strong and within the national financial integrity standards.

The company still works with digital currency exchanges to curb the criminal use of the crypto industry. The broader approach of the agency aims at sealing the gaps in the compliance systems and improving the data-oriented intelligence gathering. The strategy would help identify a suspicious activity early and enhance sound governance in the industry.

The enforcement of CryptoLink is another major move towards the continued campaign of AML weaknesses in the framework of the AUSTRAC. It supports the message that strict compliance standards have to be maintained by all of the crypto service providers. By providing strong regulatory intervention, the intention  is to protect the financial environment and ensure that people do not lose trust in new payment technologies.