Cointree, a crypto exchange based in Melbourne, has been ordered to pay a $75,120 fine after failing to send certain reports to Australia’s financial watchdog on time.
The reports, known as suspicious matter reports (SMRs), are required when a company suspects that a transaction may involve illegal activity, including money laundering or terrorism financing.
The fine was issued by AUSTRAC, the agency that monitors financial crime in Australia. According to a statement released on May 15, Cointree told the agency it had missed several deadlines for submitting these reports, which led to the enforcement action.
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AUSTRAC explained that reporting delays like these can make it harder for law enforcement to respond quickly to possible threats. SMRs must be submitted no later than three business days after a company first notices possible money laundering. If the concern relates to terrorism financing, the deadline is just 24 hours.
Brendan Thomas, head of AUSTRAC, said in the announcement:
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.
Despite the violation, AUSTRAC said Cointree had fully cooperated with the investigation and is making improvements to its internal systems to help avoid future mistakes. According to Thomas, the exchange is “taking proactive steps to remediate its systems and controls”.
Meanwhile, on May 9, German authorities shut down the crypto exchange eXch and seized approximately $38 million in digital assets. What happened? Read the full story.
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