Australia’s financial intelligence agency AUSTRAC has ordered an external audit of the payment platform Airwallex following concerns that the company may be failing to comply with anti-money laundering and counter-terrorism financing laws.

The financial regulator issued the notice to the Airwallex Designated Business Group to determine whether the platform is meeting its legal obligations to protect the Australian financial system from criminal exploitation.

AUSTRAC Chief Executive Officer Brendan Thomas said the audit was initiated due to suspicions of serious non-compliance, and that external audits are used to assess significant regulatory risks.

“As a global payment platform that facilitates the transfer of funds to multiple jurisdictions, AUSTRAC is concerned with Airwallex’s transaction monitoring program has not been attuned to the full range of risks it faces and that the company hasn’t demonstrated an acceptable understanding of who its customers are and what reporting may be required.

Our concerns also extend to how well Airwallex identifies and reports on suspicious matters and the effective oversight of these important obligations.”

The independent auditor has been appointed under section 162 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

It will assess Airwallex’s AML and CTF program, customer due diligence processes, and suspicious matter reporting.

The auditor must submit its findings to AUSTRAC within 180 days of appointment.

The scope of the audit has been set by the regulator and will be conducted at Airwallex’s expense.

Thomas said strong compliance systems and timely reporting are critical for disrupting criminal activities, including fraud, scams, illicit tobacco, drug trafficking and crimes such as child sexual exploitation.

He added that responsibility for managing money laundering and terrorism financing risks rests with boards and senior executives, and that AML and CTF controls require clear accountability, properly authorised staff and sufficient resourcing rather than being treated as a back-office function.

The results of the audit will inform AUSTRAC on whether further regulatory action is required.

In response to AUSTRAC’s order, Airwallex said it will cooperate fully with the requirement for an external review of its AML and CTF compliance program.

The company added that it supports the audit and believes its controls are fit for purpose.

It noted that an earlier AUSTRAC audit in 2024 was followed by an external review in 2025, which found that appropriate systems and controls had been implemented for the areas examined.

Airwallex also stated that it has zero tolerance for financial crime and removes customers who fail to meet its compliance requirements.

Editor’s note: This article has been updated to include a statement from Airwallex.

This article first appeared on Fintech News Singapore

Featured image: Edited by Fintech News Australia, based on image by holystds via Freepik