Sydney, January 23, 2026, 11:02 (AEDT)
- AUSTRAC has mandated Airwallex to bring in an external auditor and deliver the results within 180 days.
- The regulator raised issues with transaction monitoring, customer verification, and suspicious matter reporting under Australia’s AML/CTF framework.
- After acquiring South Korea’s Paynuri, Airwallex said it will cooperate as it pushes further into Asia.
Australia’s financial crime watchdog has mandated an external audit of payments company Airwallex, citing worries over its adherence to anti-money laundering and counter-terrorism financing (AML/CTF) regulations. The regulator aims to verify if the fintech’s controls adequately address the risks tied to cross-border fund transfers. Reuters
This comes as AUSTRAC intensifies oversight of rapidly expanding payments and remittance firms, where poor controls can enable money laundering. The regulator didn’t allege any criminal wrongdoing by Airwallex, but it has mandated an independent review, paid for by the company, with the audit report expected within 180 days. FinanceFeeds
Airwallex, which started in Australia and now operates out of San Francisco and Singapore, is stepping up its push into Asia. The company announced it has acquired South Korea’s Paynuri to gain local payments licenses and a foreign-exchange registration. Arnold Chan, APAC general manager, called the deal “a pivotal milestone” in growing Airwallex’s financial platform globally. Airwallex
AUSTRAC issued a written notice alleging that Airwallex may have violated sections of Australia’s AML/CTF Act. The suspected breaches involve ongoing customer due diligence, suspicious matter reporting, and governance requirements. The order, effective from Jan. 1, 2024, directs an auditor to examine transaction monitoring processes, “know your customer” identity checks, and whether Airwallex properly submitted suspicious matter reports—alerts flagged to AUSTRAC for potentially unlawful transactions. AUSTRAC
AUSTRAC’s chief executive Brendan Thomas said the agency brings in external auditors when it detects “serious non-compliance,” urging boards to keep a firm grip on financial crime controls. “AML/CTF is not a back-office function,” he emphasized. AUSTRAC
Airwallex said it would cooperate fully and called its financial crime program robust. An AUSTRAC audit in 2024 was followed by an independent external review in 2025, which validated elements of its program. Airwallex
Still, an external audit carries follow-up risks for a fast-growing fintech. AUSTRAC can pursue court-ordered civil penalties, hand out infringement notices, or accept enforceable undertakings if a company falls short of its obligations. The watchdog also notes that AML/CTF rules are set to change on March 31, 2026. AUSTRAC
AUSTRAC maintains a running list of external auditor notices, highlighting its use of this authority on firms like PayPal Australia, buy-now-pay-later giant Afterpay, Western Union’s Australian remittance unit, and crypto exchange Binance Australia. The latest order targeting Airwallex adds yet another big name to the roster. AUSTRAC
