Australia’s financial crime regulator has ordered Binance’s local unit to appoint an external auditor following concerns over its anti-money laundering (AML) and counter terrorism financing controls.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) said its review identified significant gaps in the crypto exchange’s governance, including limited scope for independent oversight, a shortage of local staff, and weak senior management supervision, claims Reuters.
These findings prompted the regulator to demand a thorough, independent assessment of Binance Australia’s compliance programme.
AUSTRAC chief executive Brendan Thomas said the move reflects broader risks highlighted in the agency’s latest research. “The AUSTRAC National Risk Assessment 2024 highlights the increasing vulnerability of digital currencies to criminal abuse,” Thomas said. He stressed that major global operators handling high-risk, large transaction volumes must meet higher standards of compliance.
Binance Australia said it would comply with AUSTRAC’s decision to appoint an external auditor to review its AML systems. Binance general manager for Australia and New Zealand Matt Poblocki said, “Binance Australia acknowledges AUSTRAC’s decision to appoint an external auditor to independently review our anti-money laundering program.”
The order adds to mounting regulatory pressure on the crypto giant in Australia. In December last year, the country’s corporate watchdog launched legal action against Binance’s local derivatives unit over allegations it misclassified retail customers as wholesale clients.
The independent audit is expected to review Binance’s AML and counter terrorism financing controls in detail, with AUSTRAC signalling that further regulatory action could follow if weaknesses persist.
Keep up with all the latest FinTech news here
Copyright © 2025 FinTech Global
