AUSTRAC orders external audit of Binance Australia amid concerns about AML and CTF controls
Australia’s financial intelligence agency, AUSTRAC, has directed Binance’s local arm to engage an independent auditor after finding significant weaknesses in the exchange’s anti‑money‑laundering (AML) and counter‑terrorist financing (CTF) systems. The regulator said the move follows a supervisory review that uncovered shortcomings in governance, customer identification and transaction monitoring.
AUSTRAC flagged particular worries about high staff turnover at Binance Australia, limited local resourcing and insufficient senior management oversight — factors the agency said raise doubts about the adequacy of the firm’s AML/CTF framework for operating in a high‑risk, cross‑border sector.
Binance Australia and New Zealand general manager Matt Poblocki acknowledged AUSTRAC’s decision, characterizing the appointment of an external auditor as a supervisory measure rather than an enforcement action. The exchange said it will cooperate with the review.
The regulatory intervention follows earlier friction between Binance and Australian authorities. In 2024 the Australian Securities and Investments Commission (ASIC) took legal action relating to Binance’s derivatives business, and ASIC carried out office searches and cancelled the license for Binance Australia Derivatives after prior reviews and notifications involving client classifications.
Binance’s operational challenges in Australia have also included disruptions to fiat services. In 2023 the exchange lost access to local payment rails after its payments partner was instructed to stop supporting it, leaving Australian dollar bank transfers suspended. As a result, Binance has advised customers seeking to move AUD off the platform to convert to a stablecoin such as USDT or use peer‑to‑peer methods.
The AUSTRAC audit requirement underscores heightened regulatory scrutiny of crypto firms in Australia and the broader expectation that digital‑asset platforms maintain robust customer due diligence and effective transaction monitoring when operating across borders.
