Anti Money Laundering (AML), Counter Terrorism Financing (CTF) and Fraud Prevention

What does AUSTRAC do?

AUSTRAC's purpose is to protect the integrity of Australia's financial system and contribute to the administration of justice through its expertise in countering money laundering and the financing of terrorism.

What is Money Laundering?

As AUSTRAC reports, every year, huge amounts of funds are generated from illegal activities such as drug trafficking, tax evasion, people smuggling, theft, arms trafficking and corrupt practices. These funds are mostly in the form of cash. The criminals who generate these funds need to bring them into the legitimate financial system without raising suspicion. The conversion of cash into other forms makes it more useable. It also puts a distance between the criminal activities and the funds.

'Money laundering' is the name given to the process by which illegally obtained funds are given the appearance of having been legitimately obtained. By some estimates, more than AUD1.5 trillion of illegal funds are laundered worldwide each year! By combating money laundering, we can reduce crime and weaken criminals.

What is Terrorist Financing?

Terrorist financing refers to the processing of funds to sponsor or facilitate terrorist activity. A terrorist group, like any other criminal organization, builds and maintains an infrastructure to facilitate the development of sources of funding, to channel those funds to the providers of materials and or services to the organization, and, possibly, to launder the funds used in financing the terrorist activity or resulting from that same activity. Terrorist organizations derive income from a variety of sources, often combining both lawful and unlawful funding, and where the agents involved do not always know the illegitimate end of that income. The forms of financing can be grouped in two types:

AML / CTF Policy

In anticipation of falling under AML/CTF Act regulation, BTC Markets follows what is required of a reporting entity today. Our customer due diligence requires us to know our customer (KYC) by having a record of the name, residential address and date-of-birth. We use an Australian Government approved verification system called Green ID to verify our customers. Our decision to enforce this policy reflects our desire to prevent money laundering and terrorist financing.

What is Fraud?

Fraud is a type of criminal activity, defined as an abuse of position, or false representation, or prejudicing someone's rights for personal gain. Put simply, fraud is an act of deception intended for personal gain or to cause a loss to another party. The general criminal offence of fraud can include deception whereby someone knowingly makes false representation or they fail to disclose information or they abuse a position. Bitcoin and other digital currency exchanges are an obvious target for fraudulent activity. Bitcoin transactions are mostly anonymous and definitely irreversable. A succesful fraud attempt allows the criminal to convert FIAT into digital currency. The proceeds may be used to fund other illegal criminal activities or even finance terrorism.

Fraud Prevention Policy

To assist our efforts to prevent fraudulent activity we may ask for additional proof of identity after you have verified through Green ID.

Prohibited Users

All of customer records are checked against international watch lists including:

If a customer positvely matches any of the aforementioned watch lists you will be unable to verify.