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Key Insights AUSTRAC fined Melbourne-based crypto exchange Cointree A$75,120 for failing to submit suspicious matter reports (SMRs) on time, a requirement under Australia’s anti-money laundering laws. Cointree self-reported the breaches, fully cooperated with AUSTRAC, and has taken steps to improve internal reporting systems. MELBOURNE (MarketsXplora) – Australia’s financial intelligence agency has fined Melbourne-based cryptocurrency exchange Cointree Pty Ltd A$75,120 for failing to submit multiple suspicious matter reports (SMRs) within the legally required timeframe, AUSTRAC said in a statement. The infringement notices follow a voluntary disclosure by Cointree that it had missed deadlines for filing reports mandated under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. AUSTRAC, which oversees compliance in financial transactions, said delays in submitting SMRs hinder law enforcement’s ability to swiftly act on potential threats. “Failing to submit SMRs on time denies AUSTRAC and its law enforcement partners the opportunity to act on the information in a timely manner,” AUSTRAC Chief Executive Brendan Thomas said. SMRs must be submitted within three business days once a business suspects money laundering activity, and within 24 hours for suspicions relating to terrorism financing. AUSTRAC highlighted that non-compliance with these deadlines constitutes a breach of Australian anti-money laundering laws. AUSTRAC issued the penalty after Cointree reported that it had not met these critical reporting timeframes. While the agency did not disclose the number of missed reports, it emphasized the broader risk posed by digital currency exchanges, which were identified as vulnerable in its 2024 Money Laundering in Australia National Risk Assessment. The report cited features such as speed, global reach, pseudonymity, and the ability to move funds across jurisdictions with minimal transparency as factors contributing to the sector’s susceptibility. Despite the breaches, AUSTRAC acknowledged Cointree’s full cooperation during the investigation. The exchange has already paid the penalty in full. AUSTRAC clarified that the payment does not constitute an admission of liability but brings the matter to a close. “Cointree has fully co-operated with AUSTRAC in self-disclosing the breaches and is taking proactive steps to remediate its systems and controls to ensure future compliance,” Thomas said. “Without these steps, Cointree may have been subject to a much more serious regulatory response.” Cointree, founded in Melbourne, is among several digital currency platforms operating under AUSTRAC’s regulatory oversight. The agency reiterated its commitment to enforcing compliance across the digital currency sector to mitigate the risk of financial crime.

AUSTRAC

Australia’s AUSTRAC Fines Crypto Exchange Cointree A$75,120 for Delayed Suspicious Transaction Reports