Australia’s financial crime watchdog has ordered an audit of payment platform Airwallex for suspected anti-money laundering and counter-terrorism financing compliance failures.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) said in a statement it is concerned that Airwallex’s transaction monitoring program has not been attuned to the full range of risks it faces, given the fintech facilitates the transfer of funds to multiple jurisdictions.
The Australia-founded fintech has also not defined who its customers are and what reporting may be required, it added.
“Our concerns also extend to how well Airwallex identifies and reports on suspicious matters and the effective oversight of these important obligations,” said AUSTRAC CEO Brendan Thomas.
The payment platform, which is co-headquartered in San Francisco and Singapore and is backed by investors including Tencent, DST Global, and Hillhouse said it will be co-operating fully with AUSTRAC’s external auditor review.
An external and independent auditor in 2025 had validated Airwallex’s program in Australia, following an AUSTRAC audit of its anti-money laundering and counter-terrorism financing program in 2024, the company added.
Airwallex said this week that it had acquired South Korea’s Paynuri, securing local payments licences and a foreign-exchange business registration that will allow it to operate directly in the country as it expands in Asia.