Cointree is bound by Australian law to take steps to ensure that it is not involved in the facilitation of money laundering or terrorism financing.
Various anti-money laundering (AML), counter-terrorism financing (CTF) and fraud prevention measures are in place designed to articulate our commitment to detecting, preventing and reporting attempts to use our platform to illegally launder money, to finance illegal activities such as terrorism and drug trafficking, or to commit fraud.
Our measures include, but are not limited to, the following:
- Members depositing or withdrawing fiat currency to/from their account must undergo a verification check to confirm their identity.
- Verified members are checked against international watch lists including, but not limited to, Politically Exposed Persons and US Treasury - Office of Foreign Assets Control lists.
- Fiat currency withdrawals can only be made to a bank account held in the same name as the Cointree account.
- Fiat currency deposits can only be accepted from a bank account held in the same name as the Cointree account.
- Cointree is obliged to report any suspicious activity to the relevant authorities.
What is Money Laundering?
Money Laundering is the name given to the process by which illegally obtained funds are given the appearance of having been legitimately obtained. Every year, vast 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 usable. It also puts a distance between the criminal activities and the funds.
What is Terrorism Financing?
Terrorism 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:
- Financial support - In the form of donations, community solicitation, and other fundraising initiatives. Financial support may come from states and large organizations, or from individuals.
- Revenue generating activities - Income is often derived from criminal activities such as kidnapping, extortion, smuggling or fraud. Income may also be derived from legitimate economic activities such as diamond trading or real estate investment.
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 offense of fraud can include deception whereby someone knowingly makes a false representation, fails to disclose information or abuses a position.
Who is AUSTRAC?
Australian Transaction Reports and Analysis Centre (AUSTRAC) is Australia's anti-money laundering and counter-terrorism financing regulator. AUSTRAC aims to contribute towards a financial environment hostile to money laundering, major crime, and tax evasion. Cointree is registered with AUSTRAC as a Digital Currency Exchange provider.