AUSTRAC Issues Notices to Cointree Over Late Suspicious Matter Reports

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has issued infringement notices totaling $75,120 to digital currency exchange provider Cointree Pty Ltd. The notices were issued for the alleged failure by Cointree to submit suspicious matter reports (SMRs) to AUSTRAC within the required timeframes.

AUSTRAC's action followed Cointree voluntarily disclosing that it had not met the reporting timeframes mandated 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 hinders AUSTRAC and its law enforcement partners from acting on critical information in a timely manner. Mr. Thomas also commented, "In this case, 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." He added, "Without these steps, Cointree may have been subject to a much more serious regulatory response."

In 2024, AUSTRAC released the Money Laundering in Australia National Risk Assessment, which identified the digital currency exchange (DCE) sector as being particularly vulnerable to money laundering activities. This vulnerability was attributed to the speed, global reach, pseudonymity, and ability of DCEs to facilitate funds flows to and from foreign jurisdictions with limited visibility. Regulated businesses are required to submit their SMRs within specified timeframes after forming a suspicion: within three business days for suspected money laundering and within 24 hours for suspected terrorism financing. Cointree has reportedly paid the amount in full. AUSTRAC acknowledged that while the payment does not constitute an admission of liability, it concludes this particular matter.