SYDNEY, Jan 22, 2026, 17:56 AEDT
- AUSTRAC has directed Airwallex to bring in an external auditor following concerns about potential AML/CTF compliance breaches
- The regulator raised issues regarding transaction monitoring, customer verification, and the reporting of suspicious activities
- Airwallex said it will cooperate as it expands into South Korea after acquiring Paynuri
Australia’s financial crime regulator AUSTRAC directed payments firm Airwallex on Thursday to bring in an external auditor, citing concerns over major weaknesses in its anti-money laundering and counter-terrorism financing (AML/CTF) safeguards. Reuters
The order is crucial since Airwallex operates at the core of global commerce, handling cross-border payments for businesses. This kind of fast-moving channel is precisely what regulators fear could be exploited by fraudsters and organized crime.
AUSTRAC has been pushing reporting entities to strengthen their controls before the AML/CTF regime updates kick in. New laws for existing firms are set to begin on March 31, 2026, with a wider rollout planned for July 1, 2026, earlier guidance revealed. AUSTRAC
AUSTRAC expressed concern that Airwallex’s transaction monitoring systems—designed to catch unusual payments—weren’t adequately calibrated to handle the diverse risks across its various jurisdictions. CEO Brendan Thomas stated, “We take this action where we suspect serious non-compliance.” He also emphasized, “AML/CTF is not a back-office function.” AUSTRAC
AUSTRAC has flagged Airwallex with “reasonable grounds to suspect” breaches of the AML/CTF Act, according to a notice. The review period stretches from Jan. 1, 2024, up to the notice date. Airwallex is required to appoint an auditor within 14 days after AUSTRAC approves their nominee and must submit the audit report within 180 days of that engagement. The audit will cover suspicious matter reporting — the required filings when a suspicion arises — plus additional scrutiny on higher-risk clients like politically exposed persons (PEPs), along with governance and oversight checks. AUSTRAC notice (PDF)
Airwallex said it will cooperate with the regulator and “welcome this audit as a transparent opportunity” to validate its AML/CTF program, Startup Daily reported. The company noted an AUSTRAC audit is scheduled for 2024, followed by an external validation in 2025 focusing on limited areas. It also confirmed customers failing to meet compliance requirements are terminated. Startup Daily
External audit notices rank among AUSTRAC’s most potent enforcement measures. The regulator has deployed them against several payment and fintech firms, including PayPal Australia, Afterpay, and remitters like Western Union’s Australian branch, according to its published AUSTRAC register.
The audit order comes as Airwallex expands further into Asia. It snapped up South Korea’s Paynuri to gain local payment licenses. Co-founder Lucy Liu told Reuters the acquisition allows the company to “operate directly in South Korea without third-party intermediaries.” Reuters
Airwallex announced the Paynuri deal came after a Series G round that pegged the company’s valuation at US$8 billion. It reported hitting US$1.2 billion in annualised revenue and US$266 billion in annualised transaction volume by December 2025. The fintech plans to establish a local team of around 20 in Korea by the end of 2026. APAC general manager Arnold Chan described the acquisition as “a pivotal milestone for Airwallex.” Airwallex
Airwallex offers multi-currency business accounts and payment acquiring services, competing with companies like Wise and PayPal, as well as processors such as Stripe. In cross-border operations, compliance missteps can lead to blocked onboarding, increased expenses, and damage to reputation.
The audit might wrap up as an expensive compliance check or spark more stringent measures. The real question lies in what the external auditor uncovers about how Airwallex handles risky corridors, spots suspicious activity, and determines when to off-board clients.
Australian media covered the AUSTRAC move on Thursday, with Mirage News sharing the regulator’s statement. Sydney Morning Herald Mirage News Australian Financial Review
