Airwallex Faces Money Laundering Audit Over Serious Non-Compliance Suspicions
Airwallex, an Australian-founded payments startup, is currently under scrutiny by AUSTRAC, the country’s financial crimes agency. The agency has initiated an audit over serious suspicions of non-compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) laws.
AUSTRAC Audit Overview
On January 22, 2026, AUSTRAC announced the appointment of an external auditor to investigate Airwallex’s adherence to financial regulations. The agency expressed concerns regarding the firm’s transaction monitoring program.
AUSTRAC chief executive Brendan Thomas highlighted that Airwallex has failed to demonstrate a proper understanding of its customer base and reporting requirements. This raises red flags about the company’s ability to identify and report suspicious activities effectively.
Importance of Compliance
Thomas stated that it is crucial for businesses to actively manage their AML and CTF obligations. He noted that strong compliance systems and timely reporting are vital for disrupting criminal activities related to fraud, drug trafficking, and other illicit financial operations.
In response to these concerns, Airwallex will bear the costs of the audit, which must conclude within 180 days. AUSTRAC will determine the audit’s scope, emphasizing that effective anti-money laundering measures require committed oversight from senior executives.
A Brief History of Airwallex
Founded around a decade ago in Melbourne by Jack Zhang and several co-founders, Airwallex aims to simplify cross-border transactions for businesses and individuals. The company has since established dual headquarters in Singapore and San Francisco.
- Annual Transactions: Processes over $US235 billion (approximately $345 billion) annually.
- Global Reach: Facilitates local money transfers to more than 120 countries.
- Funding: Raised $US330 million (around $491.6 million) in December 2025, boosting its valuation to $US8 billion ($12 billion).
Future Prospects and Controversies
Airwallex is reportedly preparing for a stock market listing in the United States, expected within the next two years. However, the company has faced various controversies recently, including accusations of exposing sensitive data to the Chinese government, which Zhang strongly denied as inaccurate.
As the audit progresses, stakeholders in the financial and tech industries will closely watch Airwallex’s efforts to resolve these compliance issues while pursuing its ambitious growth plans.
