Australia watchdog orders Binance unit to conduct audit over money laundering concerns
Smartphone with displayed Binance logo and representation of cryptocurrencies are placed on a keyboard in this illustration taken, June 8, 2023. REUTERS/Dado Ruvic/Illustration/ File Photo
Australia's financial crime watchdog on Friday ordered the local unit of Binance to appoint an external auditor after identifying concerns related to its anti-money laundering and counter terrorism financing controls.
The move follows a review by the Australian Transaction Reports and Analysis Centre (AUSTRAC), which cited limited scope for independent review, a lack of local staff and weak senior management oversight at the crypto exchange.
"The AUSTRAC National Risk Assessment 2024 highlights the increasing vulnerability of digital currencies to criminal abuse," said AUSTRAC chief executive Brendan Thomas.
AUSTRAC expects tighter controls from major global operators, particularly in high-risk sectors handling large transaction volumes, Thomas added.
"Binance Australia acknowledges AUSTRAC’s decision to appoint an external auditor to independently review our anti-money laundering program," Matt Poblocki, Binance’s general manager for Australia and New Zealand, said in an emailed statement.
Binance faces mounting pressure from Australian regulators, after the country's corporate watchdog sued its local derivatives unit in December last year over alleged misclassification of retail clients as wholesale clients.
