Australia’s financial crime watchdog, the Australian Transaction Reports and Analysis Centre (AUSTRAC), on Friday ordered the local unit of Binance to appoint an external auditor. This follows concerns about the cryptocurrency exchange’s anti-money laundering and counter-terrorism financing controls.
The decision comes after AUSTRAC’s review, which identified issues including limited scope for independent review, insufficient local staff, and weak senior management oversight at Binance’s local unit.
AUSTRAC Chief Executive Brendan Thomas stated, “The AUSTRAC National Risk Assessment 2024 highlights the growing vulnerability of digital currencies to criminal abuse.”
Thomas emphasized that the regulator expects stronger controls from major global operators, especially in high-risk sectors handling large transaction volumes.
Binance is facing increasing scrutiny from Australian regulators. Last December, the country’s corporate watchdog sued Binance’s local derivatives unit for allegedly misclassifying retail clients as wholesale clients.
