Binance Australia Ordered To Appoint External Auditor Over AML And Terror Financing Concerns
Binance’s Australian arm, Investbybit Pty Ltd, has been instructed by the Australian Transaction Reports and Analysis Centre (AUSTRAC) to appoint an external auditor after regulators flagged serious issues with the exchange’s anti-money laundering (AML) and counter-terrorism financing (CTF) controls.
The company has 28 days to nominate auditors, who will then be considered for selection by AUSTRAC.
Why Local Compliance Matters More Than Global Systems
AUSTRAC highlighted that Binance’s latest independent review was “limited in scope relative to its size, business offerings and risks.”
The watchdog also raised concerns over high staff turnover, insufficient local resources, and weak senior management oversight at the Australian unit.
AUSTRAC CEO Brendan Thomas stated,
“Big global operators may appear well resourced and positioned to meet complex regulatory requirements, but if they don’t understand local money laundering and terrorism financing risks, they are failing to meet their AML/CTF obligations in Australia.”
He added,
“Businesses can have systems and processes that apply to multiple jurisdictions – but they need to reflect local regulatory requirements. The systems must adapt to the regulatory requirements, not the other way around.”
AUSTRAC Expands Nationwide Crackdown On Crypto Providers
The action against Binance forms part of AUSTRAC’s wider enforcement campaign targeting 13 remittance and digital currency providers, while 50 additional platforms are under investigation.
The agency has already cancelled, suspended, or refused renewals for nine providers that failed to meet obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act.
A crypto task force established by AUSTRAC in December has been monitoring suspicious activities, particularly through crypto ATMs, which saw a surge in fraud attempts.
The agency contacted 427 inactive registered digital currency exchange providers, warning they risk deregistration if they do not withdraw voluntarily.
AUSTRAC also plans to launch a publicly searchable register to allow consumers to verify the legitimacy of registered exchanges.
Local Cases Highlight Risks Of Money Laundering Through Crypto
Recent law enforcement actions have exposed complex schemes using crypto platforms to move illicit funds.
In Queensland, four individuals were charged over a $190 million operation that blended criminal cash with legitimate business revenue before converting it to cryptocurrency.
Authorities restrained $21 million in assets, including 17 properties and multiple vehicles.
Separately, ASIC has intensified action against scams, shutting down around 130 fraudulent websites weekly and disabling over 10,000 platforms, including 7,200 fake investment sites.
The regulator also obtained court approval to wind up 95 companies tied to “pig butchering” schemes that defrauded nearly 1,500 victims out of $35.8 million.
Melbourne-based exchange Cointree was fined $75,120 for submitting suspicious matter reports after legal deadlines, slowing law enforcement’s ability to trace illicit funds.
Global Concerns Add Pressure On Binance
Binance is also under scrutiny internationally.
French authorities allege the exchange facilitated habitual money laundering linked to drug trafficking and tax fraud across the European Union, claims the company denies.
European regulators are similarly considering penalties for OKX after hackers allegedly laundered $100 million in stolen Bybit funds.
In Australia, Binance’s local operations have previously faced challenges.
Last year, the Australian Securities and Investments Commission (ASIC) sued its derivatives unit over allegedly misclassifying retail clients as wholesale clients, denying them key protections.
Binance Responds To AUSTRAC Action
Matt Poblocki, Binance’s general manager for Australia and New Zealand, said in an emailed statement,
“Binance Australia acknowledges AUSTRAC’s decision to appoint an external auditor to independently review our anti-money laundering program.”
AUSTRAC continues to call on global exchanges to tighten controls, emphasising the need for robust customer identification, thorough due diligence, and effective transaction monitoring, particularly in high-risk sectors dealing with large volumes of transactions.
Anais
