Regulators around the world are sending a clear message: compliance is not optional. 

Over the past year, governments and watchdogs have significantly increased enforcement activity related to anti-money laundering compliance. 

Australia is no different.

Recently, AUSTRAC has pursued some of the largest enforcement actions in Australian corporate history, including a $1.3 billion penalty against Westpac in 2020 and a $450 million fine against Crown Resorts in 2023 for serious breaches of anti-money laundering laws. 

Following these high-profile cases, AUSTRAC has publicly signalled an increased focus on strengthening compliance across the wider financial sector. 

Including smaller banks, fintechs, remittance providers, and other designated service industries where AML controls are still developing. Tranche Two, impacting Law, Real Escate, and Accounting, will be implemented next year.

Regulators have made it clear that the consequences of Non-compliance are not just a fine. 

Businesses need to understand it is it’s a cascading series of financial, operational, and reputational losses that can threaten the very survival of a business.

The True Cost of AML Non-Compliance: 

The direct financial penalties are only half the story. 

The cost of AML/CTF failure unfolds across multiple dimensions including:
1. FInacial and Legal Exposure 

2. Reputational Damage 

3. Regulatory Burden and Distruption 

4. Strategic Consequences 

‍Most recent 2025 crackdown 

The October 2025 enforcement action against Cryptolink underscores this regulatory reality. 

AUSTRAC issued a $56,340 infringement notice and accepted a court-enforceable undertaking after finding late reporting of large cash transactions and weaknesses in the company’s money-laundering and terrorism-financing risk assessment program.

As part of the undertaking, Cryptolink must engage external reviewers to validate its transaction reporting, assess its large-cash controls, and rebuild its AML risk framework.

AUSTRAC CEO Brendan Thomas emphasised the broader message behind the action:

“The infringement notice addresses previous non-compliance around reporting and the enforceable undertaking seeks assurance that Cryptolink has improved its risk assessments and strengthened its AML/CTF controls,” he said.

Thomas added that crypto ATMs are among the highest-risk money-laundering channels in Australia, explaining:

“This is not conjecture. It’s what our Crypto Taskforce observed and has been backed up by the work of our law enforcement partners.”

He warned that scams remain “one of the biggest drivers of suspicious activity” and that 

AUSTRAC intends to “work with the digital currency exchanges to harden the sector against exploitation but if operators don’t take this seriously, we will take action.”

The case highlights AUSTRAC’s increasing use of enforceable undertakings and targeted infringement notices to improve compliance culture across high-risk emerging sectors.

Prevention is Cheap. Intentional mistakes are not. 

AML compliance can feel like an administrative burden, but in reality, it’s a critical investment. Robust AML programs — combining technology, data analytics, and trained staff — not only prevent breaches but enhance customer trust and operational resilience.

For smaller entities, the key is proportionality: systems must match the size, risk profile, and complexity of the business. 

But “we didn’t know” or “we’re too small” are no longer viable defences. AUSTRAC’s approach in 2025 is proactive, data-led, and unrelenting.

The Real Cost: Beyond the Balance Sheet

The “real cost” of non-compliance is measured not only in dollars, but in lost opportunities, damaged credibility, and diminished resilience. 

In 2025, doing the right thing isn’t just about staying out of trouble, it’s about staying in business.

Chat with our team today.