Australian authorities fined a local crypto exchange for deliberately delaying reporting suspicious activity on its platform. Australian Transaction Reports and Analysis Centre (ATRAC) slapped the Melbourne-based crypto exchange Cointree with a fine of $75,120 after the exchange failed to submit suspicious matter reports (SMRs) within 3 business days.
Interestingly, the exchange was penalized after it voluntarily “disclosed it had not met the reporting timeframes required by the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act)”
AUSTRAC CEO Brendan Thomas stated that failing to submit SMRs on time doesn’t help AUSTRAC and its law enforcement partners to act on the information swiftly. Thomas said, “SMRs provide AUSTRAC and our law enforcement partners with information about suspected misuse of the financial system, and this information goes on to trigger countless criminal investigations each year.
We take timely SMR reporting seriously because these reports form the backbone of our intelligence function.
We need to action these reports as soon as possible, which is why the timeframes are put in place – they allow us to move with pace and alert our partners to suspected criminal conduct.”
The CEO further stated that if Cointree had not taken the necessary steps to self-disclose the matter to the authorities, it would have faced harsher penalties.
He further pointed out, “If you’re not submitting your SMRs on time, it’s likely your systems aren’t up to scratch.” As such, the CEO requested the digital currency exchanges to have appropriate “systems and controls” to meet the AML/CTF obligations.
