Australia’s financial crime watchdog, AUSTRAC, has told payments firm Airwallex to hire an external auditor. The regulator cited concerns that the company’s anti-money laundering and counter-terrorism financing controls may not be up to scratch.
The move targets a period from January 2024 to the present. AUSTRAC said it suspects the firm’s monitoring systems aren’t fully calibrated to handle the different risks that come with its global operations. CEO Brendan Thomas acknowledged the seriousness of the order, noting that AML and CTF compliance is “not a back-office function.”
Audit Requirements and Timeline
Airwallex has 14 days to appoint an auditor approved by AUSTRAC and 180 days to deliver the final report. The audit will cover suspicious matter reporting, oversight of high-risk clients like politically exposed persons, and governance practices. Airwallex said it is cooperating fully and sees the audit as “a transparent opportunity” to validate its systems. Non-compliant customers will continue to be off-boarded.
Broader Regulatory Context
External audits are one of AUSTRAC’s strongest enforcement tools. The regulator has used them before with firms including PayPal, Afterpay, and Western Union’s Australian branch. In fast-moving cross-border payments, even small lapses can create big risks for fraud or crime.
Expansion in Asia
Airwallex has been growing quickly in Asia. It recently bought South Korea’s Paynuri, gaining local payment licenses and the ability to operate without intermediaries. The company plans a local team of around 20 by the end of 2026.
The acquisition came after a Series G funding round that valued the company at US$8 billion. By December 2025, Airwallex reported US$1.2 billion in annualized revenue and US$266 billion in transaction volume.
What Comes Next
The audit could be a routine check or could trigger stricter oversight, depending on what the auditor finds. Either way, it highlights the growing regulatory pressure on cross-border payment firms and the need to stay vigilant.
