AUSTRAC Orders Binance Australia Audit Over AML Concerns
The post AUSTRAC Orders Binance Australia Audit Over AML Concerns appeared on BitcoinEthereumNews.com.
In brief AUSTRAC has directed Binance Australia to nominate external auditors within 28 days after identifying “serious concerns” with anti-money laundering controls. The regulator flagged inadequate reviews, “high staff turnover,” and insufficient local management oversight at the platform. This action adds to a string of regulatory measures, including a $5.1 million fine for Kraken and warnings directed at Bitget. Australia’s financial intelligence agency has ordered the Australian arm of the world’s largest crypto exchange to appoint an independent auditor, citing “serious concerns” in its crime prevention systems that allegedly leaves the platform vulnerable to illicit money flows. AUSTRAC directed Investbybit Pty Ltd, Binance Global’s Australian arm, to undergo external scrutiny after identifying major gaps in the exchange’s anti-money laundering and counter-terrorism financing controls. The latest AUSTRAC directive gives Binance Australia 28 days to nominate external auditors for regulatory approval. The enforcement action is another regulatory blow for Binance Australia, which has faced mounting compliance challenges as authorities crack down on crypto platforms that fail to meet local standards. In December, ASIC fined Kraken’s local operator $5.1 million for unlawful margin trading, and last month it warned Bitget for offering unlicensed leveraged futures products. “Big global operators may appear well resourced and positioned to meet complex regulatory requirements, but if they don’t understand local money laundering and terrorism financing risks, they are failing to meet their AML/CTF obligations in Australia,” AUSTRAC CEO Brendan Thomas said. The regulator highlighted troubling findings, including an inadequate independent review that failed to match Binance’s scale and risk profile. “High staff turnover” and insufficient local management oversight raised additional red flags about the platform’s governance structure, according to the statement. “Businesses need to maximise the value of independent reviews and ensure appropriate testing and review across critical processes and controls,” Thomas said, demanding greater rigour…
