Australia orders Binance audit after flagging ‘serious concerns’
Austrac has given the company 28 days to nominate auditors, from which the agency will make a selection
[SYDNEY] Australia’s financial crimes agency ordered Binance Holdings’ local arm to appoint an external auditor after finding “serious concerns” with money laundering and terrorism financing controls at the cryptocurrency exchange.
The Australian Transaction Reports and Analysis Centre, known as Austrac, said its concerns were sparked by issues including Binance Australia’s latest independent review, which it described as “limited in scope relative to its size, business offerings and risks.” Austrac has given the company 28 days to nominate auditors, from which the agency will make a selection, it said in a statement on Friday (Aug 22).
Austrac also raised concerns about high staff turnover along with a lack of local resourcing and senior management oversight at the Australian unit of Binance, the world’s largest crypto exchange by volume.
“Big global operators may appear well resourced and positioned to meet complex regulatory requirements,” Brendan Thomas, chief executive officer of Austrac, said in the statement. “But if they don’t understand local money laundering and terrorism financing risks, they are failing to meet” obligations around such activities in Australia.
Binance representatives didn’t immediately respond to a request for comment.
The move is the latest attempt by Austrac to crack down on illegal activities that have been associated with the crypto world. In June, Austrac placed a A$5,000 (S$4,140) limit on cash deposits and withdrawals from crypto automatic teller machines and warned a sharp rise in digital asset ATMs had attracted fraudsters and scammers.
In 2023, Binance and its founder Changpeng Zhao pleaded guilty to anti-money laundering and sanctions charges and agreed to pay US$4.3 billion in a sweeping settlement with the US.
“Understanding specific risks of criminality in the Australian context is crucial to ensure they’re meeting their reporting obligations here,” Thomas said. BLOOMBERG
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