Australian financial regulator Austrac explores blockchain potential to automate funds transfer instructions

The Australian Transaction Reports and Analysis Centre (Austrac) is testing blockchain use in automating funds transfer instructions, ZDNet reported.

AUSTRAC is Australia's financial intelligence agency with regulatory responsibility for Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF).

For the project, Austrac has collaborated with Swinburne University of Technology. Together, they are developing a prototype to test the feasibility of using blockchain technology and smart contracts to help reporting entities such as banks, remitters, and casinos, automate the reporting international fund transfer instructions (IFTIs) to Austrac.

The proof-of-concept reportedly began in December 2018 and is expected to run for a year, a spokesperson told the news outlet, adding that blockchain is one of the technologies that are being explored for IFTI reporting automation.

Last month, Swinburne, in collaboration with Capgemini, launched a global Blockchain Centre of Excellence. They will work closely to develop and implement blockchain solutions from proof of concept through to production.

In April 2018, Austrac implemented new laws for digital currency exchange (DCE) providers operating in the country. Under the new laws, DCE providers are required to adopt and maintain and AML/CTF program to identify, mitigate and manage money laundering and terrorism financing risks.