AUSTRAC to Examine Fintech Leader Airwallex
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Brief Overview
- AUSTRAC mandates an audit of Airwallex due to compliance concerns.
- Issues related to transaction oversight and risk evaluation.
- Airwallex commits to fully collaborate with the audit process.
- Airwallex broadens its reach in Asia through Paynuri purchase.
Concerns Raised by AUSTRAC Regarding Airwallex
The Australian Transaction Reports and Analysis Centre (AUSTRAC), the nation’s financial crime regulator, has launched an audit of the payment service Airwallex. The prominent fintech is being examined for possible shortcomings in adhering to anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.
Oversight of Transactions and Risk Evaluation
The central issue for AUSTRAC lies in Airwallex’s transaction monitoring system. The agency suspects that the system might not be sufficiently aligned with the broad range of risks, particularly since Airwallex enables fund transfers across various regions. This situation raises doubts about the firm’s capacity to effectively detect and report suspicious activities.
Identification of Customers and Reporting Practices
Another concern brought to light by AUSTRAC is Airwallex’s method regarding customer identification and its reporting duties. The authority has noted that the fintech has not adequately delineated its customer demographic or the essential reporting criteria, which could create compliance vulnerabilities.
Airwallex’s Reaction and Recent Updates
In light of the audit, Airwallex has reiterated its dedication to fully assisting AUSTRAC’s external review process. The enterprise has undergone prior audits, including an independent assessment of its AML and CTF strategy in 2025.
Growth in Asian Markets
Despite facing these regulatory hurdles, Airwallex is actively enhancing its presence in Asia. Recently, the fintech acquired the South Korean payment firm Paynuri, which enabled it to gain essential local payment licenses and a foreign-exchange business registration. This strategic decision is anticipated to strengthen Airwallex’s operations within the region.
Conclusion
The audit conducted by AUSTRAC on Airwallex highlights the vital necessity of robust AML and CTF compliance within the fintech sector. As Airwallex navigates these regulatory obstacles, its ongoing expansion in Asia signifies resilience and strategic advancement.
Questions & Answers
Q: Why is AUSTRAC auditing Airwallex?
A: AUSTRAC is conducting an audit of Airwallex due to concerns about the company’s transaction monitoring system and possible compliance deficiencies regarding anti-money laundering and counter-terrorism financing laws.
Q: What are AUSTRAC’s primary concerns?
A: AUSTRAC’s main issues include the effectiveness of Airwallex’s transaction monitoring system, customer identification procedures, and reporting responsibilities.
Q: How is Airwallex addressing the audit?
A: Airwallex has affirmed its intention to fully collaborate with AUSTRAC’s external examination and has underlined its commitment to regulatory compliance.
Q: What implications does the Paynuri acquisition have for Airwallex?
A: The purchase of Paynuri enables Airwallex to acquire local payment licenses and broaden its operations in South Korea, thereby enhancing its foothold in the Asian market.
Q: When was Airwallex’s program validated earlier?
A: An external independent auditor validated Airwallex’s program in 2025, following an AUSTRAC audit of its AML and CTF framework in 2024.
