The Australian Transaction Reports and Analysis Centre (AUSTRAC) has ordered Airwallex to appoint an external auditor to evaluate its AML and CFT compliance.
The decision comes as AUSTRAC raised concerns over the payment platform’s transaction monitoring systems, which have reportedly not kept up with its risk profile. The auditor, who should be hired by Airwallex, is set to look into whether the company has breached multiple sections of Australia’s AML/CFT Act.
Background on AUSTRAC’s decision
The agency assumes that Airwallex did not appropriately monitor transactions, identify customers, report suspicious activity, and maintain proper compliance oversight from January 2024 until January 2026. The enforcement notice was signed by AUSTRAC’s National Manager of Regulatory Operations, Bradley Brown, which demands that the company engage with an auditor within 14 days and provide its findings within 180 days. Airwallex will also have to pay for the audit.
Furthermore, the notice raises concerns regarding Airwallex’s transaction monitoring programme and whether it has been calibrated to detect the financial crimes that could go through the platform. As part of the audit, the company will be examined to determine whether it can identify activity related to fraud, scams, and payments related to other criminal activities.
In addition to this, AUSTRAC also questioned whether Airwallex can effectively identify and report suspicious activity, as well as whether its senior management offers proper oversight of these obligations.
Enforcing this measure on Airwallex follows a long string of other actions taken by AUSTRAC to safeguard Australia’s financial ecosystem. One of the most significant ones was the fine that Revolut had to pay, which accounted for nearly USD 123.000. The penalty was due to Revolut’s local arm not submitting its compliance reports on time. At that time, Revolut cooperated with AUSTRAC and paid the infringement notice in full, with the company identifying the issues and taking prompt steps to submit its reports and solidify its controls.
When it comes to Airwallex, AUSTRAC’s order comes after a rather successful period. Just a few days before this announcement, the company acquired Paynuri, aiming to support Korean businesses looking to expand their operations beyond borders while also assisting global firms in entering Korea’s market.
