Amid the conflict between Russia and Ukraine, Russian paramilitary forces are asking for cryptocurrency donations to buy weapons, armor and drones, Australian intelligence agency Austrac has warned. Officials at the Australian Transaction Reporting and Analysis Center referred to cryptocurrency as a "standard part of the money laundering toolkit."
John Moss, the agency's chief executive and intelligence chief, claimed that cryptocurrencies have gone mainstream, The Guardian reported. "It's no longer a niche option for criminal activity," he said.
When Moss raised concerns about donations made by Australians to terrorist groups, he mentioned that conventional methods of money laundering have shifted to digital currency. The main reason behind the change is to send money abroad.
Moss claims that the 'cryptocurrency' is an easy-to-use fundraiser, especially when combined with social media. However, Michael Tink, Austrac's national intelligence operations manager, believes that contemporary fundraising through digital currency is not very broad.
Australians have sent digital money to organized terrorist groups such as al-Qaeda and ISIL (Islamic State of Iraq and the Levant), according to Austrac. “This is organizational support for travel, training, fighter salaries, and uniforms,” Tink said.
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In early 2022, the UK's Financial Conduct Authority (FCA) closed all bitcoin ATMs. Unlike the UK, however, Australia has an increasing number of regulated crypto ATMs. Moss expressed concern about its illegal use and the increase in the number of fraud cases.
The financial agency has regulated crypto exchange providers for the purposes of money laundering and terrorist financing. However, Tink says the case is not the same everywhere. “It is not difficult to collect cryptocurrencies and go undetected in parts of Eastern Europe,” Tink said.
Furthermore, the senior Austrac official believes that criminals are at high risk due to the placement stage of the money laundering cycle. He praised the industry for the quality of suspicious activity, calling Australian cryptocurrency exchanges "first in the line of defense."
(With agency contributions)
