Global fintech giant Airwallex is set to undergo a mandatory external audit of its anti-money laundering and counter-terrorism financing (AML/CTF) program, as ordered by the Australian financial intelligence agency, AUSTRAC. The regulator has cited serious compliance concerns, prompting a thorough review of the company's frameworks. In response, Airwallex has affirmed its full cooperation, expressing confidence that the audit will validate its existing systems.
AUSTRAC Cites Serious Compliance Deficiencies
AUSTRAC CEO Brendan Thomas stated the action was initiated due to suspected serious non-compliance, highlighting concerns that Airwallex's transaction monitoring program is not adequately attuned to its risks. The regulator also questioned the company's understanding of its customer base and its subsequent reporting obligations. These issues form the core of the agency's decision to compel an independent review of the fintech's operations.
The external auditor, who will be appointed under the AML/CTF Act, must deliver their findings to AUSTRAC within 180 days. This report will be instrumental in determining whether further regulatory action is necessary against the nearly $12 billion company. Airwallex is required to cover all costs associated with this comprehensive examination of its compliance program.
Mr. Thomas emphasized that strong compliance is essential for protecting Australia's financial system from criminal exploitation, including fraud, drug trafficking, and other illicit activities. He stressed that effective anti-money laundering controls must be driven from the top, with boards and senior executives actively overseeing risk management. This audit serves as a direct intervention where the regulator perceives significant gaps in these critical obligations.
Airwallex Expresses Confidence in Its Framework
Despite the regulatory scrutiny, Airwallex has publicly welcomed the audit as a transparent opportunity to independently validate its AML/CTF program. The company stated it is committed to the highest standards of regulatory compliance and will cooperate fully with AUSTRAC's requirements. This proactive stance aims to reassure stakeholders of its commitment to maintaining a secure financial platform.
The Melbourne-founded fintech pointed to a previous validation of its systems as a basis for its confidence. Following an AUSTRAC audit in 2024, an independent auditor confirmed in 2025 that the company had implemented appropriate controls for the areas reviewed. Airwallex expects this upcoming, more comprehensive audit will similarly conclude that its framework is robust and market-leading.
Reinforcing its position, the company highlighted its zero-tolerance policy for any financial crime or illicit activity on its network. Airwallex maintains that it enforces robust compliance requirements for all customers on its platform. Any user unable to meet these stringent standards is promptly terminated to protect the integrity of its services.
High Stakes and Future Implications
The audit places Airwallex, a major player in the global fintech space with a valuation approaching $12 billion, under a significant microscope. The outcome carries substantial weight, potentially impacting its reputation and operational license within Australia. It also signals AUSTRAC's intensified focus on ensuring compliance within the rapidly growing digital payments sector.
This mandated external audit represents a critical juncture for Airwallex, juxtaposing the regulator's serious concerns with the company's firm belief in its compliance infrastructure. The findings will not only determine the fintech's immediate future in Australia but also serve as a key indicator of regulatory expectations for the industry. All eyes will be on the auditor's report to see if Airwallex's confidence is indeed well-founded.