Australian Exchange Cointree to be Fined for Violating Rules

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has issued sanctions against local crypto exchange Cointree for breaching anti-money laundering and counter-terrorist financing (AML/CTF) regulations.

The platform voluntarily notified the regulator about the violations committed, which led to a formal investigation. According to the rules, all Australian crypto platforms registered with AUSTRAC are required to report any suspicious transactions (SMR - Suspicious Matter Report) that may be related to money laundering within 3 working days; and to submit reports on transactions related to possible terrorist financing within 24 hours. Cointree failed to comply with the established deadlines, thereby creating a risk to the financial system and complicating the prompt response of law enforcement.

AUSTRAC CEO Brendan Thomas said such breaches were hampering the ability to effectively prevent illegal activity. He also noted that the platforms’ failure to detect and report risky transactions was indicative of weak internal controls. The exchange faces a formal fine, the exact amount of which has not yet been disclosed but could be in the hundreds of thousands of Australian dollars.

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