Dirty money: criminals use this technology to escape the law, but their time may be up

Home Affairs Minister Tony Burke will announce the changes, which will include the ability to ban crypto ATMs, in a speech to the National Press Club in Canberra on Thursday.

"It is about legitimising the good actors and shutting out the bad - giving business certainty and consumers' confidence," Mr Burke said in a written excerpt seen by this masthead.

Amendments to the Anti-Money Laundering/Counter Terror Financing Act will give the Australian Transaction Reports and Analysis Centre (AUSTRAC) the power to restrict or prohibit certain "high-risk financial products, services and delivery channels, including crypto ATMs."

The government will also update the Home Affairs Department's online visa entitlement verification system, making it easier for banks to determine a person's residence status and close so-called mule accounts, which criminals use to move or launder funds after taking them over.

"This is an example of how we can use visa powers, together with the law enforcement agencies in the portfolio, to very simply provide a way of guarding against this form of money laundering," Mr Burke said.

Mule accounts are sometimes bought or rented from international students or other visa holders.

AUSTRAC estimates 85 per cent of the transactions sent by the top users of crypto ATMs are the proceeds of scams or money mule activity.

AUSTRAC has found that criminals often pivot to crypto ATMs after mule accounts are closed.

It is estimated that 99 per cent of crypto ATM transactions are cash deposits, which are high risk for money laundering.

Mr Burke said there were "good and bad actors [in] the world of digital assets."

"There are significant money laundering, terrorism financing and serious crime risks associated with crypto ATMs," he said.

"Australia has the highest number of CATMs in the region, and the third highest in the world."

Three years ago there were 200 in operation, up from 23 six years ago.

"Our legislation for a new framework for digital asset business will extend existing financial services laws in a targeted way," Mr Burke said.

"If a bank suspects mule activity, they will be able to check visa-holder status and use this to inform decisions about whether the account is being used by criminals.

"It's about equipping banks with the right information to help them manage risk, and prevent their accounts falling into the hands of criminals."

Then Attorney-General Mark Dreyfus told the National Press Club last July that Australia had become "a playground for organised crime", after AUSTRAC's risk assessment found criminals were still using cash, luxury goods, real estate, domestic banks, casinos and remittance services to launder funds.

New laws extending Australia's anti-money laundering and counter-terrorism financing regulations to "tranche 2" entities, such as lawyers, accountants and real estate agents, will come into force on 1 July 2026.