Australia Orders AML Audit of Binance Unit

Australia’s financial crime watchdog, AUSTRAC, has directed Binance Australia to appoint an external auditor amid serious concerns regarding the exchange’s Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) procedures. The move comes as regulators intensify scrutiny of digital currency exchanges operating in high-risk, cross-border environments.

AUSTRAC Flags Shortcomings and Demands Oversight

According to AUSTRAC, its request for an independent audit follows findings from a recent risk assessment that identified substantial vulnerabilities within Binance Australia’s AML and CTF systems. AUSTRAC CEO Brendan Thomas emphasized the increasing risk of digital currencies being misused for criminal activities, stating, “We expect robust customer identification, due diligence and effective transaction monitoring.” The regulator highlighted troubling factors such as high staff turnover, inadequate local resources, and insufficient senior management oversight, raising concerns about the platform’s internal governance.

Binance Australia’s general manager, Matt Poblocki, acknowledged the regulator’s decision as a supervisory review rather than a punitive enforcement action. The external audit aims to evaluate and strengthen Binance’s compliance protocols.

Regulatory Challenges for Binance in Australia

Binance has faced ongoing regulatory pressure in Australia. In late 2024, the Australian Securities and Investments Commission (ASIC) launched legal proceedings against Binance Australia Derivatives, citing consumer protection lapses. This followed the cancellation of Binance’s derivatives license after ASIC investigated misclassifications of users and abrupt closures of trading accounts. An earlier probe saw ASIC searching Binance’s offices and probing a suspended local derivatives business.

Binance also suffered banking setbacks in 2023 when its payment provider Zepto ceased support, effectively disconnecting the exchange from Australian dollar services with minimal warning. Users seeking withdrawals have been forced to convert funds to stablecoins or use peer-to-peer options, as conventional bank transfers remain unavailable.

AUSTRAC’s mandate for an external AML audit underscores the ongoing risks and regulatory obligations faced by global crypto exchanges like Binance. As compliance standards become more stringent, effective oversight remains critical to ensuring safety, transparency, and trustworthiness in Australia’s digital asset market.

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