The Australian Transaction Reports and Analysis Centre (AUSTRAC) ordered the local unit of crypto exchange Binance to appoint an external auditor over concerns about its Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) systems.
The regulator said Friday the decision was made “after identifying serious concerns” with Binance’s AML/CTF controls.
Matt Poblocki, Binance Australia and New Zealand general manager, told Cointelegraph, “Binance Australia acknowledges AUSTRAC’s decision,” adding that the move was “one of their supervisory review measures and not an enforcement action.”
AUSTRAC CEO Brendan Thomas said last year’s risk assessment by the regulator “highlights the increasing vulnerability of digital currencies to criminal abuse.” The request for an external audit follows regulatory engagement across the “priority sector” that the crypto industry has become.
The regulator also shared concerns about high staff turnover at Binance and a lack of local resourcing and senior management oversight. This, AUSTRAC said, raised questions about the adequacy of the firm’s AML and CTF governance.
“This is a global company operating across borders in a high-risk environment. We expect robust customer identification, due diligence and effective transaction monitoring,” Thomas said.
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Binance’s troubles in Australia
Binance has found itself in the crosshairs of Australian regulators before. In late 2024, the Australian Securities and Investments Commission (ASIC) took legal action against Binance Australia Derivatives over alleged consumer protection failures.
Back in the summer of 2023, ASIC searched Binance Australia’s offices. The investigation was part of a probe into the exchange’s defunct Australian derivatives business. This followed ASIC’s cancellation of Binance Australia Derivatives’ license.
The cancellation of the license followed local regulators reviewing Binance Derivatives over notifications of account closures sent to users due to a false classification of some users as “wholesale clients.”
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Binance debanked in Australia
In 2023, Binance was forced to suspend Australian dollar fiat money services after its local payment services provider, Zepto, was instructed to stop supporting the exchange. Subsequent statements indicated that the exchange got less than a day’s warning from its payments partner before it was “cut off” from the local banking system.
To this day, Binance advises users who intend to withdraw Australian dollars from the platform to either buy the USDt (USDT) stablecoin to transfer the funds off the platform or utilize the peer-to-peer trading services. The “Bank Transfer” option is grayed out with a “Channel Suspended” message.
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