Australian Transaction Reports and Analysis Centre (AUSTRAC) issued infringement notices of $75,120 to digital currency exchange provider Cointree Pty Ltd for the alleged failure to submit suspicious matter reports (SMRs) to AUSTRAC on time.

The action came after Cointree 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 said that failing to submit SMRs on time denies AUSTRAC and its law enforcement partners the opportunity to act on the information in a timely manner.

“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.

“Without these steps, Cointree may have been subject to a much more serious regulatory response,” he said.

In 2024, AUSTRAC released the Money Laundering in Australia National Risk Assessment which identified the digital currency exchange (DCE) sector as being vulnerable to money laundering due to its speed, global reach, pseudonymity and ability to facilitate funds flows to and from foreign jurisdictions with low visibility.

Regulated businesses need to submit their SMRs within days of forming a suspicion otherwise it constitutes a breach. Specifically, within 3 business days for suspected money laundering and within 24 hours for suspected terrorism financing.

The company has paid the amount in full. AUSTRAC acknowledges that payment does not constitute an admission of liability, the payment concludes this matter.