Aussie Watchdog Orders Binance Unit to Conduct Audit Over Money Laundering

Australia’s financial crime watchdog has ordered Binance’s local unit to appoint an external auditor after identifying shortcomings in its anti-money laundering and counter-terrorism financing controls, Reuters reported.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) flagged limited scope for independent review, a lack of local staff, and weak senior management oversight at the crypto exchange. (Photo: Binance Facebook)

The decision follows a review by the Australian Transaction Reports and Analysis Centre (AUSTRAC), which flagged limited scope for independent review, a lack of local staff, and weak senior management oversight at the crypto exchange.

“The AUSTRAC National Risk Assessment 2024 highlights the increasing vulnerability of digital currencies to criminal abuse,” AUSTRAC chief executive Brendan Thomas said.

He added that tighter controls are expected from major global operators, particularly those in high-risk sectors handling large volumes of transactions.

“Binance Australia acknowledges AUSTRAC’s decision to appoint an external auditor to independently review our anti-money laundering program,” said Matt Poblocki, Binance’s general manager for Australia and New Zealand, in an emailed statement.

The move adds to Binance’s regulatory headaches in Australia, where the corporate watchdog sued its local derivatives arm in December over alleged misclassification of retail clients as wholesale clients.