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Australia’s financial intelligence agency, AUSTRAC, has directed Binance Australia to undergo an independent audit amid concerns over the crypto exchange’s anti-money laundering and counter-terrorism financing (AML/CTF) controls.
The regulator said Binance’s most recent external review was “limited in scope relative to its size, business offerings, and risks,” raising red flags about the adequacy of its governance framework. AUSTRAC also highlighted issues including high staff turnover, insufficient local resourcing, and weak senior management oversight, all of which could undermine effective compliance.
“This is a global company operating across borders in a high-risk environment,” AUSTRAC CEO Brendan Thomas stated. “We expect robust customer identification, due diligence, and effective transaction monitoring.”
Binance has been given 28 days to nominate independent auditors for AUSTRAC’s approval and selection.
Responding to the development, Matt Poblocki, General Manager of Binance Australia and New Zealand, said the company remains committed to “best-in-class compliance standards” and will continue to enhance its risk management capabilities.
The directive adds to Binance’s growing list of regulatory challenges worldwide. Last year, founder Changpeng “CZ” Zhao was sentenced to prison in the United States after pleading guilty to violating AML requirements. The exchange also agreed to forfeit $2.5 billion and pay an additional $1.8 billion fine as part of a settlement with US authorities.
The move underscores regulators’ increasing scrutiny of global crypto exchanges, with AUSTRAC signalling that compliance shortcomings will not be tolerated in Australia’s financial system.
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