The Australian authorities’s monetary system anti-crimes regulator, AUSTRAC, has referred to as in an exterior auditor at Airwallex over issues that the fintech unicorn has did not correctly adjust to anti-money laundering and counter-terrorism financing (AML/CTF) legal guidelines.
AUSTRAC CEO Brendan Thomas, mentioned the exterior audits will assess critical compliance issues by the regulator, which is charged with defending the monetary system from felony exploitation.
“We take this motion the place we suspect critical non-compliance, as a result of we count on companies to be actively managing their AML/CTF obligations,” he mentioned.
“Sturdy compliance methods and well timed reporting of suspicious exercise are important to disrupting felony actions and illicit proceeds of crime generated from fraud, scams, illicit tobacco, drug trafficking and funds regarding crimes reminiscent of little one sexual exploitation.”
Thomas mentioned AUSTRAC is anxious with Airwallex’s transaction monitoring program “has not been attuned to the complete vary of dangers it faces and that the corporate hasn’t demonstrated a suitable understanding of who its prospects are and what reporting could also be required”, including that “our issues additionally lengthen to how effectively Airwallex identifies and stories on suspicious issues and the efficient oversight of those essential obligations.”
The auditor, appointed underneath the Anti-Cash Laundering and Counter-Terrorism Financing Act 2006, will study whether or not the enterprise is complying with key AML/CTF necessities together with, having a AML/CTF program and complying with it; buyer due diligence; and assembly suspicious matter reporting obligations.
The auditor should report their findings to AUSTRAC inside 180 days of their appointment. The regulator decides the scope of the audit and Airwallex is required to select up the tab for the examination
The discovering will decide whether or not AUSTRAC takes additional regulatory motion.
“Efficient anti-money laundering controls begin on the high. Boards and senior executives should be actively overseeing how cash laundering and terrorism financing dangers are recognized, assessed and managed throughout their enterprise,” Thomas mentioned.
The intervention by the monetary crimes authority comes amid revelations that Airwallex is seeking to rent influencers to tout cofounder and CEO Jack Zhang as a thought chief and “an aspirational operator — calm, considerate, and decisive — somebody value studying from” on influencer market Partnar.
The Melbourne-founded, Singapore-based fintech, which is domiciled within the Cayman Islands, is now valued at almost $12 billion after elevating $498 million final month additionally engaged legal professionals in an try and get the 9 newspapers to delete 9 tales revealed during the last 5 years, based mostly on inside firm paperwork, which solid Airwallex in a destructive mild. One, revealed in 2024, detailed how Zhang requested the corporate’s common counsel and chief compliance officer in late 2021 if there was a technique to get round Hong Kong’s anti-money laundering legal guidelines.
“Is there a approach we are able to take away the requirement of gathering all shareholders (over 25%) ID in Hong Kong,” Zhang reportedly requested on Slack, three years after the enterprise relocated its HQ from Melbourne to Hong Kong.
Airwallex mentioned in an announcement that might be co-operating totally with AUSTRAC’s necessities and “we welcome this audit as a clear alternative to independently validate our AML/CTF program”.
The fintech mentioned that following an AUSTRAC audit of our AML/CTF program in 2024, it was validated by an exterior and unbiased auditor in 2025, who mentioned the corporate “carried out acceptable methods and controls in accordance with its ML/TF dangers and nature, dimension, and complexity for the restricted areas reviewed within the scope of this evaluation.”
The assertion mentioned Airwallex maintains strong compliance necessities and any buyer unable to conform “is promptly terminated” from the platform.
“We’re assured that our AML/CTF compliance program is match for function and needed controls are in place that adequately handle all areas of dangers going through our enterprise,” the assertion mentioned.
“We count on that this upcoming exterior audit will validate that our framework is powerful, complete, and market-leading.”
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