UK cracks down on illegal crypto ATMs

UK cracks down on illegal crypto ATMs; growing money laundering concerns in Australia and, in the US, ABA and state groups press for the withdrawal of a FinCEN proposal.

Napier AI

February 17, 2023

In a UK first, an unregistered crypto business operating illegally is shut down; following a $150m crackdown, concerns about professionals willing to facilitate money laundering grow in Australia; and in the US, the American Bankers Association (ABA) pushes back against a FinCEN proposal.

Unregistered and unregulated: UK authorities crack down on Illegal crypto ATMs

In the UK’s first crackdown on illegal crypto ATMs, in a joint investigation by the Financial Conduct Authority and the West Yorkshire police, the Force’s digital intelligence and investigation unit raided several locations in Leeds which they suspected to be hosting machines that enabled customers to buy or convert traditional currencies into crypto assets. The FCA said it was working with multiple law enforcement partners to investigate other sites that may be hosting illegal crypto ATMs.

Australia a ‘safe place to hide’ for money launderers

Last week’s raids by the Australian Federal Police on more than 20 properties in Sydney have revealed the role of real estate agents, lawyers and accountants in facilitating shadow banking operations, including money laundering, and highlight the need for Australia to step up efforts to regulate and police such activities.

ABA and state groups urge FinCEN to withdraw ‘flawed’ registry access proposal

The American Bankers Association and 51 state bankers' associations have written to the Financial Crimes Enforcement Network (FinCEN) asking it to withdraw its proposal regarding access to the registry of beneficial ownership information. The proposal, established last year pursuant to the Corporate Transparency Act, has been called "fatally flawed" as it limits banks’ access to beneficial ownership information and prohibits sharing it outside the US.