Australia’s financial intelligence regulator has ordered an external audit of global payments company Airwallex, citing concerns over potential failures to comply with anti-money laundering and counter-terrorism financing requirements.
Airwallex provides payment and financial infrastructure services to a range of sectors, including digital commerce and gaming-related businesses.
The order, issued by AUSTRAC, requires an independent auditor to assess whether the Airwallex Designated Business Group is meeting its obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. The financial watchdog said the move follows concerns about possible non-compliance in areas including transaction monitoring, customer due diligence, and the reporting of suspicious matters.
AUSTRAC Chief Executive Officer Brendan Thomas said external audits are a key regulatory tool when serious compliance concerns arise. “We take this action where we suspect serious non-compliance, because we expect businesses to be actively managing their AML/CTF obligations,” he said.
According to the regulator, its concerns include whether Airwallex’s transaction monitoring framework is adequately calibrated to the risks it faces as a global payments platform facilitating cross-border fund transfers. AUSTRAC also raised questions about whether the company has demonstrated a sufficient understanding of its customer base and associated reporting obligations.
“As a global payment platform that facilitates the transfer of funds to multiple jurisdictions, AUSTRAC is concerned that Airwallex’s transaction monitoring program has not been attuned to the full range of risks it faces,” Thomas said, adding that concerns also extend to how suspicious matters are identified, reported, and overseen.
The audit, conducted under section 162 of the AML/CTF Act, will examine whether Airwallex maintains and complies with an AML/CTF program, operates ongoing customer due diligence, and meets its suspicious matter reporting obligations. The auditor must report its findings to AUSTRAC within 180 days, with the review carried out at Airwallex’s expense.
AUSTRAC said the outcome will help determine whether further regulatory action is required, emphasizing that AML/CTF compliance must be actively overseen by boards and senior management.
