The Australian Transaction Reports and Analysis Centre (AUSTRAC) has instructed Airwallex to hire an external auditor to assess the company’s adherence to Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations. 

AUSTRAC’s concerns stem from perceived shortcomings in Airwallex’s transaction monitoring systems, which they believe have failed to align with the platform’s risk management profile. The auditor appointed by Airwallex will need to review whether there were any breaches of Australia’s AML/CFT Act over a specific period.

AUSTRAC’s Assessment Details

According to AUSTRAC, Airwallex may not have appropriately monitored transactions, adequately identified customers, or reported suspicious activities between January 2024 and January 2026. The enforcement notice issued by AUSTRAC’s National Manager of Regulatory Operations, Bradley Brown, mandates that the company hire an auditor within two weeks and submit the findings in 180 days. Airwallex will also be responsible for covering the audit costs.

The audit will focus on whether Airwallex’s transaction monitoring program is effective enough to detect potential financial crimes through its platform, as well as if it can spot and report fraudulent activities, scams, or other criminal payments.

Moreover, AUSTRAC questions Airwallex’s ability to effectively identify and report suspicious activity, along with the adequacy of senior management oversight in these areas.

Regulatory Context

This measure against Airwallex follows a series of actions by AUSTRAC aimed at protecting Australia’s financial systems. A notable instance involved Revolut, which was fined approximately USD 123,000 for late submission of compliance reports. Despite the penalty, Revolut cooperated and resolved the issue promptly.

Airwallex recently made a significant move by acquiring Paynuri, to facilitate cross-border operations for South Korean businesses and support international firms entering the South Korean market.