Airwallex says it 'welcomes' AUSTRAC audit
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More news: Airwallex says it will fully cooperate with the AUSTRAC investigation of its an Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) compliance program.
What they said: In a public statement the company said it remains "committed to the highest standards of regulatory compliance" and welcomes the audit as an opportunity to independently validate its credentials.
"We are confident that our AML/CTF compliance program is fit for purpose and necessary controls are in place that adequately address all areas of risks facing our business," the company said.
It noted it had been through an AUSTRAC audit in 2024 and another external audit the following year.
"We have zero tolerance for financial crime or illicit activity of any kind on our network," Airwallex said in a statement.
"We maintain robust compliance requirements and any customer unable to comply is promptly terminated from our platform.
"We expect that this upcoming external audit will validate that our framework is robust, comprehensive, and market-leading."
AUSTRAC investigates Airwallex over money laundering compliance concerns
The news: AUSTRAC has appointed an external auditor to investigate whether Airwallex is complying with its anti-money laundering and counter-terrorism financing (AML/CTF) obligations, citing concerns over its designated business group.
What they said: AUSTRAC chief executive Brendan Thomas said the assessment was a critical regulatory tool "to assess serious compliance concerns and to protect the financial system from criminal exploitation".
“As a global payment platform that facilitates the transfer of funds to multiple jurisdictions, AUSTRAC is concerned ... Airwallex’s transaction monitoring program has not been attuned to the full range of risks it faces and that the company hasn’t demonstrated an acceptable understanding of who its customers are and what reporting may be required," Thomas said.
“Our concerns also extend to how well Airwallex identifies and reports on suspicious matters and the effective oversight of these important obligations."
AUSTRAC said the auditor will investigate whether Airwallex is maintaining and complying with an AML/CTF program, operating ongoing customer due diligence, and meeting its obligations to report suspicious matters.
The auditor's report must be filed within 180 days, with the scope determined by AUSTRAC and the expense charged to Airwallex.
“Effective anti-money laundering controls start at the top. Boards and senior executives must be actively overseeing how money laundering and terrorism financing risks are identified, assessed and managed across their business," Thomas said.
“AML/CTF is not a back-office function. It requires clear accountability, properly authorised staff who can submit reports and sufficient resourcing to support timely and accurate reporting.”
The context: AUSTRAC recently tightened its focus on payments companies, undertaking a supervisory campaign that identified a number of key compliance risks across the booming industry.
In December it was again thrust in the spotlight amid accusations that it was effectively operating a "Chinese backdoor into sensitive American data" — allegations co-founder Jack Zhang has strongly denied — and raising historic concerns over the company's internal data controls.
The source: AUSTRAC
