Australian banks gain new powers to tackle crypto-linked scams targeting international students

Australia’s banks will be able to act faster against money laundering networks exploiting international students, following new powers announced by Home Affairs Minister Tony Burke. The changes, outlined in his National Press Club address on Thursday, strengthen anti-money laundering and counter-terrorism laws to curb the misuse of legitimate bank accounts and crypto ATMs.

Under the new rules, banks can check a visa holder’s status if they suspect “mule activity” — cases where criminals use individuals’ accounts to transfer illicit funds. This information will help banks decide whether an account is compromised and should be closed.

Anton Moiseienko, a senior lecturer quoted by the Australian Associated Press (AAP), said the move is significant because visa holders, including students, are often targeted.

“If you're an international student, you're in a country for a limited period of time,” he said. “Then if someone says: ‘I'll pay you to get your bank account and use it’, you might not appreciate the risks related to that and the liabilities you're exposing yourself to.”

Australian Banking Association chief executive Simon Birmingham, in comments to AAP, called the reform a “sensitive and collaborative step” toward preventing criminal misuse of bank accounts.

In addition, Australia’s financial intelligence agency, AUSTRAC, will gain authority to restrict or ban high-risk financial products and services, including crypto ATMs — which allow users to convert cash into digital currency. According to AUSTRAC, about 85 per cent of transactions by top crypto ATM users are linked to scams or mule behaviour.

Data from AUSTRAC’s crypto taskforce, launched in December, shows that around 150,000 crypto ATM transactions worth $275 million take place annually in Australia. Most of the heavy users were found to be scam victims or coerced money mules.

Opposition Leader Sussan Ley, in remarks to AAP, also supported the reforms, saying they align with national security priorities.

“Anything that is an intervention with criminals, whether they be around currency manoeuvres or something to do with children and online safety, these are things we'll look at closely and carefully,” she said.