Australia watchdog orders audit of fintech Airwallex on suspected compliance miss

Jan 22 (Reuters) - Australia's ⁠financial crime watchdog ⁠said ‍on Thursday it had ordered an audit of payment platform Airwallex Pty for suspected ‍anti-money laundering and counter-terrorism financing compliance failures.

The Australian ​Transaction Reports and Analysis Centre (AUSTRAC) said in a statement it is ​concerned that Airwallex's transaction monitoring program has not been attuned to the full range of risks it faces, given the fintech facilitates ​the transfer of funds to multiple jurisdictions.

The Australia-founded fintech has also not defined who its customers ​are and what reporting may be required, it added.

"Our concerns also extend to ‌how well Airwallex identifies and reports on suspicious matters and the effective oversight of these ​important obligations," said AUSTRAC Chief ⁠Executive Officer Brendan Thomas.

The payment platform, which is co-headquartered in San Francisco and Singapore ‌and is backed by investors including Tencent, DST Global, and Hillhouse said it will be co-operating fully with AUSTRAC's external ‌auditor review.

An external and independent auditor in 2025 had validated ‌Airwallex's program in Australia, following an AUSTRAC audit of its anti-money laundering and counter-terrorism financing program in 2024, the company added.

Airwallex ‍said on Wednesday it had acquired South Korea's Paynuri Co Ltd, securing local payments ⁠licences and a foreign-exchange business registration that will allow it to operate directly in the country as it expands in Asia.

(Reporting by Sherin Sunny in Bengaluru; Editing by Sonia Cheema and Rashmi Aich)

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