NCR Atleos, the world’s largest ATM supplier, has announced the removal of over 50 ATMs from tobacco stores across Australia. This decision follows an investigation revealing that some of these machines were located in establishments linked to the sale of illegal tobacco products. The New York Stock Exchange-listed company, which operates a network of more than 5,300 ATMs in the country, is responding to concerns about potential money laundering associated with self-filled cash machines.
The move comes in the wake of similar actions by other ATM suppliers, including Next Payments and atm2go, both of which have begun withdrawing their machines from stores connected to illicit tobacco sales. According to an investigation by the ABC, NCR’s Cashzone ATMs were found in shops selling illegal tobacco and vape products in cities such as Brisbane, Darwin, and Sydney.
One significant revelation from the ABC investigation indicated that the Cashzone ATMs were present in a store owned by a man who had previously been convicted of 15 counts of illicit tobacco sales. Another location in Brisbane was owned by an individual who had served time for fraud. Despite these findings, NCR has not disclosed details about the due diligence conducted before placing its machines in these stores.
A spokesperson for NCR stated, “Following a review, we have chosen to remove a number of ATMs and will be removing self-filled ATMs in tobacco stores, which account for 1 percent of our fleet.” The company asserted that it complies with all applicable legislation and will continue to monitor the situation, removing any ATMs linked to the illegal tobacco trade.
Concerns About Money Laundering
Experts have raised alarms about the potential for money laundering through self-loading ATMs, which allow store owners to fill machines directly with cash. Doron Goldbarsht, director of the Financial Integrity Hub at Macquarie University, emphasized that this arrangement creates vulnerabilities regarding the traceability of funds. He remarked, “Because cash is filled directly by store owners rather than through a regulated provider, such ATMs may present heightened vulnerabilities to misuse, including for money laundering or to facilitate proceeds of crime.”
Dr. Goldbarsht noted that NCR’s proactive decision to withdraw these ATMs signifies an acknowledgment of the associated risks. He added, “This should signal to both government and industry that current oversight may be insufficient, and that stronger regulatory settings or supervisory mechanisms could be needed to mitigate financial crime risks in the ATM sector.”
The ABC’s findings have uncovered instances where individuals with previous convictions for crimes related to tobacco or drugs were able to deposit cash into ATMs operated by Next Payments. This concern is compounded by the fact that private ATMs are not subject to the same anti-money laundering laws as traditional banking institutions, raising the possibility that illicit cash could be introduced into the financial system without adequate scrutiny.
Ongoing Investigations and Implications
Investigative reports have highlighted more than 20 stores selling illegal cigarettes that house private ATMs. At least five cases have emerged where ATM companies, including NCR, have established contracts with businesses owned by individuals charged or convicted of offences related to illicit tobacco sales.
One notable example is the Riverwood News Agency and Tobacconist in Sydney, which was recently found selling illegal cigarettes for $10 per pack. The store is registered to a company owned by Rui Chen, who previously faced legal action for multiple tobacco sales violations. Records indicate that NCR signed a deal with Chen’s company for an ATM in the same store just ten months after his conviction.
The implications of NCR’s decision extend beyond individual businesses. As more companies in the ATM industry reassess their operations in light of these revelations, the potential for stricter regulatory oversight may emerge. The evolving landscape raises critical questions about the responsibilities of ATM operators in preventing financial crime, particularly in sectors vulnerable to abuse.
As the situation develops, NCR’s response and the actions of other ATM suppliers will likely be scrutinized further, especially regarding their commitment to ensuring compliance with financial regulations and maintaining the integrity of their operations.
