What is AUSTRAC?

A brief look at what AUSTRAC is and how it affects you.

Posted on 19/02/2018

So what is it?


Basically, AUSTRAC is a government financial intelligence unit which deals with anti-money laundering (AML) and counter terrorism financing.


AUSTRAC currently has a draft legislation available for industry and public comment, which will come into force from 3rd April, 2018. Digital currency exchanges operating in Australia will need to sign up to the Digital Currency Exchange register, and comply with AUSTRAC's reporting obligations.

 

 All financial service providers, such as banks, and now digital currency exchanges, are required to identify and verify their customers, keep records of transactions, and report;


  • Cash transactions of AUD$10,000 or more.
  • Transfers of amounts of AUD$10,000 or more, into or out, of Australia.
  • Any suspicious transactions of any size, including non-cash transactions.


AUSTRAC receives and analyses thousands of transactions to identify money laundering, fraud and tax avoidance activities.


What does this mean for you?


Unfortunately it means tougher ID verification requirements, and tighter reporting obligations could put your cryptocurrency activities under the microscope.


However it will also mean that the tougher regulations will make it harder for new local exchanges to enter the market, and provide more protection for the consumer.



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