The Australian Transaction Reports and Analysis Centre (Austrac) has mandated that Binance Australia appoint an external auditor due to “serious concerns” regarding its money laundering controls.
Austrac states that the most recent independent review of Binance Australia was “limited in scope relative to its size, business offerings, and risks.” The regulator has expressed concerns about the high turnover of staff at the Australian branch of the world’s largest crypto exchange, coupled with insufficient local resources and senior management oversight, raising doubts about the effectiveness of its anti-money laundering and counter-terrorism financing (AML/CTF) governance.
Brendan Thomas, CEO of Austrac, emphasized the need for robust customer identification, thorough due diligence, and effective transaction monitoring, stating, “This is a global company operating across borders in a high-risk environment.”
Binance has been given 28 days to select external auditors for Austrac’s review. Matt Poblocki, General Manager of Binance Australia and New Zealand, reiterated the company’s commitment to maintaining top-tier compliance standards and enhancing its capabilities.
Binance has recently placed a strong emphasis on compliance following a series of regulatory issues, culminating in a prison sentence for founder Changpeng “CZ” Zhao last year after pleading guilty to violating anti-money laundering regulations. The exchange also agreed to forfeit $2.5 billion to the government and pay a $1.8 billion fine in a settlement with various U.S. agencies.