Australia’s Watchdog Audits Fintech Airwallex Over Compliance Concerns
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has initiated an audit of Airwallex Pty Limited. This comes amid concerns over potential compliance failures related to anti-money laundering and counter-terrorism financing regulations.
Compliance Audit of Airwallex
AUSTRAC’s assessment focuses on Airwallex’s transaction monitoring programs. The watchdog has indicated that these programs may not adequately address the risks associated with facilitating fund transfers across various jurisdictions.
Concerns Raised
- Unclear customer identification
- Insufficient reporting measures
- Inadequate identification and reporting of suspicious activities
Brendan Thomas, CEO of AUSTRAC, expressed significant concerns over how Airwallex manages oversight of its compliance obligations. The effectiveness of the company’s monitoring framework will be a critical focus area during this audit.
Company Profile and Background
Airwallex was founded in Australia and has established co-headquarters in San Francisco and Singapore. It has garnered support from notable investors, including Tencent, DST Global, and Hillhouse.
The fintech sector is rapidly evolving, and Airwallex aims to stay a step ahead. The company is in the process of expanding its footprint in Asia, recently acquiring Paynuri Co Ltd in South Korea. This acquisition grants it essential local payment licenses and a foreign-exchange business registration, facilitating direct operations in the region.
Status of Previous Audits
In 2025, an external auditor validated Airwallex’s compliance programs in Australia. This followed an earlier audit by AUSTRAC in 2024, which had also scrutinized the company’s anti-money laundering and counter-terrorism financing measures.
Airwallex has communicated its commitment to fully cooperating with the ongoing audit by AUSTRAC. This collaboration is pivotal for addressing compliance issues and ensuring regulatory adherence as the company continues to grow.
The scrutiny faced by Airwallex highlights the importance of robust compliance frameworks within the fintech industry, especially as global financial regulations evolve.
