Businesses now have a clear route to success because of technological advancements. Financial transactions have become ten times more straightforward due to the internet, which allows them to be completed in seconds. Despite this, many fraudsters launder money daily by cracking firewalls. Bank accounts are hacked into by certain criminals, who then take their victims’ hard-earned money. Due to the increasing popularity of cryptocurrency, financial security issues are becoming more prevalent daily. As a result, the Australian government has made it essential for cryptocurrency and remittance service providers to have AUSTRAC registration (the Australian Transaction Reports and Analysis Centre) and to comply with AML (Anti Money Laundering) regulations.
One out of five Australians invests in cryptocurrencies every day. According to a poll conducted in Brisbane, Sydney, and Melbourne, 90 per cent of the population has invested in some type of cryptocurrency. It provides a clear picture of how the cryptocurrency field has affected more than half of Australia’s younger generation. This is only one of the numerous reasons why crypto services should be compliant with anti-money-laundering regulations and register themselves as such.
Apart from financial institutions, there are a variety of different organisations and industries that must adhere to anti-money-laundering regulations:
- Services related to cryptocurrencies
- Purchasing and selling of currency
- Sectors related to real estate
- Companies that provide insurance
- Remittance services
- Branches of the banking sector
- Gambling (casino and gaming) industry agglomeration
The following are the top reasons for remittance and cryptocurrency firms to comply with AML:
Risk of losing one’s reputation: To maintain a long-standing presence in the business, brands must have a favourable reputation among their peers in the financial sector and the general public. Cryptocurrency and remittance providers must comply with anti-money laundering regulations and complete AUSTRAC registration to avoid harming their hard-earned reputation. The implementation of these anti-money-laundering standards will result in safer transactions taking place on their platform. Aside from that, brand recognition will improve, which will, in turn, encourage individuals to utilise their platform. In addition, the service provider shall make timely payments of bitcoin taxes.
Protection against developing threats: Thieves will find a method to steal everything, from money to identities, and they will do it with a smile on their face. Whatever security and firewall technologies are in place, hackers will always find a method to breach the system’s perimeter protection. Their ability to trade sums as high as 3 trillion dollars in a matter of seconds makes it extremely simple for them. If bitcoin providers are wise enough to protect their own and their customers’ funds, they will ensure that they are registered with AUSTRAC in accordance with AML regulations. This streamlines the process of identifying criminals who act as merchants and suppliers by reporting them to the Australian government’s cybercrime agency.
Inflation and the avoidance of fines: The process of preserving financial assets via AML-related operations is time-consuming and costly. Operating something on a broad scale requires a lot of physical labour, which makes it challenging. As time goes on, the possibility of money laundering increases exponentially, not to mention the inflation of prices around the globe. It is recommended that you get your AUSTRAC registration and AML or CFT (Combating the Financing of Terrorism) certification as soon as feasible. If the registration procedure is not completed on time, the service provider may be subjected to a significant financial penalty. It is preferable to register ahead of time and avoid all of the fuss than to wait until the last minute and risk missing out.
Client/customer experience should not be jeopardised: If sectors such as casinos, gambling, and cryptocurrencies are not registered with the Australian government for anti-money-laundering purposes, customers would have little confidence in the services. The prospective clients will not want to take the chance that their hard-earned money will end up in the hands of the wrong people. Since it is hazardous, it is not worth it to jeopardise the client experience on the platform.
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