Crypto ATMs fueling criminal activity, Treasury warns

FinCEN warns that rapidly proliferating cryptocurrency ATMs are increasingly exploited for scams and money laundering, citing widespread operator noncompliance with AML obligations and common schemes targeting seniors. The notice details red flags such as structured payments below SAR thresholds, multiple kiosk use, and large deposits by new customers, urging financial institutions to monitor related cash withdrawals and transactions. Regulatory responses include a U.S. bill to mandate registration and transparency for kiosks, New Zealand’s nationwide ban, and Australia’s enhanced KYC and spending limits.