Australian regulator orders Airwallex compliance audit

AUSTRAC issues formal audit order

The Australian Transaction Reports and Analysis Centre, known as AUSTRAC, issued the order on 22 January. It requires Airwallex Designated Business Group to appoint an independent auditor. The review will check compliance with anti-money laundering and counter-terrorism financing rules under Australian law.

AUSTRAC used powers under section 162 of the AML/CTF Act 2006 — a step usually taken when risks appear unmanaged. The auditor must deliver findings directly to the regulator within 180 days. Airwallex must pay for the review and give full access to systems, records, and staff — leaving little room for internal filtering.

Global payments raise risk questions

AUSTRAC linked its concerns to the nature of Airwallex’s business. The company moves money across borders and into multiple jurisdictions. That scale may increase exposure to hidden financial crime risks — especially if monitoring systems do not reflect real transaction patterns.

Brendan Thomas, AUSTRAC’s chief executive, said the regulator acts when it sees warning signs. “We take this action where we suspect serious non-compliance,” he said. He added that firms must actively manage risks — not wait for problems to surface.

The regulator also questioned how suspicious matters are handled. AUSTRAC said concerns extend to how issues are identified, reviewed, and reported inside the business. Those processes form the backbone of early risk detection.

What the audit will examine

The audit will focus on core duties required under Australia’s AML and CTF rules. These checks are basic, but critical, for trust and oversight. The review will assess:

• Whether an AML and CTF program exists and works as intended

• How customer checks are carried out and kept up to date

• How suspicious transactions are flagged and reported

Governance under closer watch

AUSTRAC stressed that compliance cannot rest with frontline teams alone. Boards and senior leaders must oversee AML and CTF controls — and ensure enough resources support them. Thomas said strong oversight requires constant attention, not occasional review.

Once the audit ends, AUSTRAC will decide what comes next. Possible outcomes may include tighter supervision or formal enforcement action — depending on the findings. The audit will guide that decision.

Airwallex responds to the review

Airwallex said it will cooperate fully with the audit process. In a statement issued on 22 January, the company welcomed the review as an independent check. Management said it believes current controls are fit for purpose and address existing risks.

Nevertheless, the final view now rests with the auditor — and AUSTRAC. Over the next six months, the results may shape how closely the company is watched going forward.