AUSTRAC Cracks Down on Binance With Mandatory Audit Over Compliance Failures
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has taken action against Investbybit Pty Ltd, Binance’s Australian subsidiary, for significant violations of the nation’s anti-money laundering and counter-terrorism financing (AML/CTF) controls. As part of its enforcement actions, the regulatory body has mandated that Binance Australia must nominate external auditors for AUSTRAC’s consideration and selection. The exchange has 28 days to carry out the exercise or risk facing further enforcement actions. AUSTRAC CEO Sheds Light on Regulatory Stance Mr Brendan Thomas, AUSTRAC’s Chief Executive Officer (CEO), reiterated the regulatory body’s commitment to citizens’ protection against crypto scams. He noted that AUSTRAC’s National Risk Assessment in 2024 showed increasing vulnerability of cryptocurrencies to fraudulent acts. Mr Thomas stated: “I remind all digital currency exchanges to remain alert to transactions that indicate suspicious behaviour, including money laundering via scams and cybercrime and terrorism financing – the potential for these activities are much higher for global exchanges.” The CEO emphasized the need for global operators like Binance to understand and implement guidelines that would ensure investors’ safety. He also spoke on the significance of understanding risks of criminality in the Australian context. Thomas noted that understanding these intricacies will be crucial in ensuring that trading platforms do not default on their reporting obligations. AUSTRAC CEO added: “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.”