Regulators Force Binance Australia to Undergo Mandatory AML Audit

AUSTRAC has mandated that Binance Australia appoint an external auditor following concerns over the crypto exchange’s anti-money laundering and counter-terrorism financing (AML/CTF) controls. The Australian Transaction Reports and Analysis Centre (AUSTRAC) has outlined several issues, including the limited scope of Binance’s most recent independent review and insufficient local resourcing and management oversight at the exchange. The agency emphasized the need for global operators like Binance to align their compliance frameworks with local regulatory requirements and to maintain robust risk controls that reflect their scale and market presence [1].

AUSTRAC CEO Brendan Thomas highlighted the increasing vulnerability of digital currencies to criminal abuse, citing the National Risk Assessment 2024 as a key reference. He noted that while large global exchanges may appear well-equipped to handle regulatory demands, they must demonstrate an understanding of local AML/CTF risks to fulfill their obligations. The regulator also pointed to high staff turnover and gaps in governance as significant concerns. According to Thomas, these factors raise questions about Binance Australia’s capacity to uphold the necessary safeguards against financial crime [3].

Binance Australia, which is the local arm of the world’s largest centralized crypto exchange by transaction volume, has been granted 28 days to nominate external auditors for AUSTRAC’s consideration. The move marks a further step in the regulator’s broader efforts to address the risks posed by digital assets, including the introduction of a A$5,000 limit on cash deposits and withdrawals at crypto ATMs in June. This regulatory scrutiny follows a broader pattern of increased oversight of the sector, particularly in light of past enforcement actions involving Binance [3].

AUSTRAC stressed the importance of independent reviews being sufficiently comprehensive to cover critical processes and controls, urging businesses to maximize the value of such assessments. The regulator also warned that digital currency exchanges must remain vigilant for suspicious transaction patterns, including those indicative of money laundering, scams, cybercrime, and terrorism financing. Thomas reiterated that the scale of operations and associated risks must directly inform the strength of compliance measures [1].

The latest developments add to a series of regulatory pressures facing Binance in Australia. Earlier this year, the country’s corporate watchdog filed a lawsuit against Binance’s local derivatives unit, alleging that it misclassified retail clients as wholesale. This comes amid a global regulatory landscape increasingly focused on crypto-related compliance, including a 2023 settlement in the U.S. in which Binance and its founder agreed to pay $4.3 billion for anti-money laundering and sanctions violations [3].

Source:

[1] title1 (https://www.austrac.gov.au/news-and-media/media-release/austrac-orders-audit-global-crypto-exchange)

[2] title2 (https://www.reuters.com/sustainability/boards-policy-regulation/australia-watchdog-orders-binance-unit-conduct-audit-over-money-laundering-2025-08-22/)

[3] title3 (https://www.bloomberg.com/news/articles/2025-08-22/australia-orders-binance-audit-after-flagging-serious-concerns)

[4] title4 (https://www.afr.com/technology/money-laundering-watchdog-calls-in-auditors-at-binance-20250822-p5mp2i)