Australia watchdog orders audit of fintech Airwallex on suspected compliance miss

Core Viewpoint - Australia's financial crime watchdog, AUSTRAC, has ordered an audit of Airwallex for suspected compliance failures related to anti-money laundering and counter-terrorism financing [1][2] Group 1: Compliance Concerns - AUSTRAC is concerned that Airwallex's transaction monitoring program does not adequately address the full range of risks associated with its operations, which involve transferring funds across multiple jurisdictions [1] - The fintech has not clearly defined its customer base or the reporting requirements that may arise from its operations [2] - AUSTRAC's CEO, Brendan Thomas, expressed concerns regarding Airwallex's ability to identify and report suspicious activities and the oversight of these obligations [2] Group 2: Company Operations and Expansion - Airwallex, co-headquartered in San Francisco and Singapore, is backed by notable investors such as Tencent, DST Global, and Hillhouse, and has committed to fully cooperate with AUSTRAC's external auditor review [3] - An external auditor had previously validated Airwallex's compliance program in Australia in 2025, following an AUSTRAC audit in 2024 [3] - Recently, Airwallex acquired South Korea's Paynuri Co Ltd, obtaining local payment licenses and a foreign-exchange business registration to facilitate its expansion in Asia [4]