Last updated October 31, 2022
Dexah Advisory Pty Ltd (ACN 647 452 962) operating under the business name AUDD Digital is a registered Digital Currency Exchange (DCE) as recognised by AUSTRAC (DCE100737894-001).
What does AUSTRAC do?
AUSTRAC (Australian Transaction Reports and Analysis Centre) is an Australian government financial intelligence agency responsible for monitoring financial transactions to identify money laundering, organised crime, tax evasion, welfare fraud, and terrorism financing. AUSTRAC’s purpose is to protect the integrity of Australia’s financial system and contribute to the administration of justice through its expertise in countering money laundering and the financing of terrorism.
What is Money Laundering?
Money laundering refers to the concealment of the origins of illegally obtained digital currency or government-issued currency, known as fiat. By definition, a person who launders money deals with money that is reasonably believed to be the proceeds of a crime. Criminals hide the owner and the source of funds by passing them through a sequence of digital currency transactions and services. The provisions for money laundering offences can be found in the Criminal Code Act of 1995.
Organized criminals utilise professional money laundering syndicates to conceal the illicit nature of funds derived from criminal activities such as human trafficking, child exploitation, drug trafficking, cybercrime, fraud, and other financial crimes.
What is Terrorism Financing?
Terrorist financing entails the solicitation, collection, or provision of funds with the intent of supporting or funding terrorist acts or organisations. There are both legal and illegal sources of funds, as the financial aspect of terrorism may involve digital currency purchased with legitimate funds, which are then used for funding acts of terrorism. In accordance with the International Convention for the Suppression of the Financing of Terrorism, a person commits the crime of financing terrorism “if that person, by any means, directly or indirectly, unlawfully and knowingly, provides or collects funds with the intent or knowledge that they will be used, in whole or in part, to carry out” a crime covered by the Convention.
Therefore, the primary objective of individuals or organisations involved in the financing of terrorism is not necessarily to conceal the sources of the funds, but rather to conceal both the financing and the nature of the activity being financed relating to terrorism.
According to the compliance and regulation guidelines outlined by AUSTRAC, AUDD Digital, through its subsidiary Dexah Advisory PTY LTD, is a registered Digital Currency Exchange provider (also known as a DCE) and adheres to the guidelines. Our customer due diligence requires that we have a record of the customer’s name, residential address, and date of birth. To validate this information, we may use an Australian Government-approved verification system in addition to requesting physical, real-time identification from the customer. Email and phone number verification is also required, and in some instances, social media accounts are utilised to verify their online presence. AUSTRAC, our governing body, requires us to enforce this policy.
What is Fraud?
Fraud is a type of criminal activity defined as the abuse of a position, the making of a false representation, or the violation of another person’s rights for personal gain. Fraud is a simple act of deception committed for personal gain or to cause harm to another party. The general criminal offence of fraud may encompass deception, in which a person knowingly makes a false representation, fails to disclose information, or abuses a position. We acknowledge that both Digital Currencies and Digital Currency Exchanges are obvious fraud targets. The vast majority of Digital Currency transactions are anonymous and irreversible. If a fraud attempt is successful, the criminal can convert fiat currency into digital currency. The profits may be used to finance additional illegal criminal activities or even terrorism.
The information we collect to fulfil our AML/CTF obligations may also be used to prevent or detect potential fraudulent activity, thereby aiding our efforts to prevent fraud.
All customer records are checked against international watch lists including, but not limited to:
- US Treasury – Office of Foreign Assets Control
- Australian Department of Foreign Affairs and Trade
- Politically Exposed Persons registers
If you are on any of the aforementioned watch lists, you will not be permitted to use our services.