AUSTRAC Demands Binance Audit Over Local AML Oversight Gaps

AUSTRAC, Australia’s financial intelligence unit, has mandated that Binance Australia engage an independent auditor to review its anti-money laundering (AML) and counter-terrorism financing (CTF) controls following the identification of significant regulatory concerns. The directive applies to Investbybit Pty Ltd, Binance’s Australian legal entity, which operates as a registered digital currency exchange provider in the country. The regulator has highlighted issues including the limited scope of Binance Australia’s most recent independent review, high staff turnover, and inadequate local resourcing and senior management oversight, all of which raise questions about the adequacy of its AML/CTF governance.

AUSTRAC CEO Brendan Thomas emphasized that digital currencies are increasingly vulnerable to criminal abuse, as outlined in the regulator’s National Risk Assessment 2024. He stressed the need for global operators to understand and adapt to local money laundering and terrorism financing risks, noting that businesses must align their systems with local regulatory requirements rather than the other way around. Thomas also pointed out that the scale of Binance’s operations and transaction volume necessitates correspondingly robust controls. “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 said.

The order for an independent audit follows AUSTRAC’s broader regulatory engagement with the crypto industry, which has been identified as a priority sector due to its elevated risk profile. AUSTRAC has previously flagged weaknesses in the adequacy of AML/CTF systems in the digital currency space and has urged exchanges to ensure independent reviews are rigorous and comprehensive. Binance Australia now has 28 days to nominate external auditors for AUSTRAC’s consideration, with the regulator retaining the final authority to select the auditor. The regulator expects the audit to include critical processes and controls that align with the firm’s size, business offerings, and associated risks.

This is the latest regulatory challenge for Binance in Australia, which has previously faced actions from the Australian Securities and Investments Commission (ASIC). In late 2024, ASIC took legal action against Binance Australia Derivatives over alleged consumer protection failures, while in 2023, a search of Binance Australia’s offices was conducted as part of an investigation into the exchange’s defunct derivatives business. Additionally, in 2023, Binance was forced to suspend Australian dollar fiat money services after its local payment services provider was instructed to cease supporting the exchange.

Binance Australia has acknowledged the AUSTRAC directive as part of its supervisory review measures and has stated its commitment to maintaining best-in-class compliance standards. General Manager Matt Poblocki emphasized that the firm has engaged “openly and transparently” with AUSTRAC and will continue to enhance its capabilities. The regulator, meanwhile, has reiterated its focus on ensuring digital currency operators comply with Australian law and limit their exposure to financial crime.

Source:

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

[2] Australian Regulator Orders Audit of Binance AML Systems (https://cointelegraph.com/news/australia-orders-external-audit-of-binance-s-local-unit-over-aml-concerns)

[3] BREAKING: Australian watchdog orders AML audit at ... (https://www.amlintelligence.com/2025/08/breaking-australian-watchdog-orders-aml-audit-at-crypto-exchange-binance/)

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

[5] Binance Australia ordered to hire auditor for money ... - DL News (https://www.dlnews.com/articles/regulation/binance-australia-directed-to-hire-auditor-for-aml-concerns/)