AUSTRAC Orders Binance Australia to Appoint Auditor Over AML Failings

A Warning to Global Exchanges

Australia’s financial intelligence and anti-money laundering agency, AUSTRAC, has ordered Binance Australia to appoint an external auditor after identifying “serious concerns” with the crypto exchange’s AML/CTF controls. The directive comes after a regulatory review of Investbybit Pty Ltd, the local arm of the world’s leading centralized crypto exchange.

According to a media release, the decision was prompted by several alleged failings on the part of Binance Australia. AUSTRAC CEO Brendan Thomas flagged the company’s recent independent review, which he said was “limited in scope” relative to Binance’s size, business offerings, and risk profile.

AUSTRAC also raised concerns about a lack of local oversight and resources, as well as high staff turnover. These issues led the agency to question the overall adequacy of Binance’s AML/CTF governance in the country.

Thomas underscored that while global operators like Binance may appear well-resourced, they must adapt their systems to reflect local regulatory requirements. “If they don’t understand local money laundering and terrorism financing risks, they are failing to meet their AML/CTF obligations in Australia,” he said.

The AUSTRAC chief also reminded all digital currency exchanges to remain vigilant against suspicious transactions, particularly those linked to scams, cybercrime, and terrorism financing. He stated:

I remind all digital currency exchanges to remain alert to transactions that indicate suspicious behaviour, including money laundering via scams and cybercrime and terrorism financing – the potential for these activities are much higher for global exchanges.

Binance Australia has been given 28 days to nominate external auditors for AUSTRAC’s consideration and selection.

Since the beginning of the year, AUSTRAC has been tightening controls on crypto exchanges and has taken enforcement action against entities that allegedly failed to adhere to certain requirements. For instance, Bitcoin.com News reported in May that AUSTRAC had fined the crypto exchange Cointree for allegedly failing to submit suspicious matter reports on time.

Before that, the agency took action against 13 remittance and digital currency exchange providers. Starting in March 2026, AUSTRAC will require crypto entities to capture user data as well as report financial transactions information.