The Australian Transaction Reports and Analysis Centre (Austrac) has ordered the local unit of crypto giant Binance to appoint an external auditor over "serious concerns" about money laundering controls.
Austrac says Binance Australia's most recent independent review was "limited in scope relative to its size, business offerings and risks".
The regulator also flagged concerns with high staff turnover at the Australian business of the world's largest crypto exchange, as well as a lack of local resourcing and senior management oversight, raising questions about the adequacy of its AML/CTF governance.
Brendan Thomas, CEO, Austrac, says: “This is a global company operating across borders in a high-risk environment. We expect robust customer identification, due diligence and effective transaction monitoring.”
Binance has been given 28 days to nominate external auditors for Austrac’s consideration and selection.
Matt Poblocki, GM, Binance Australia and New Zealand says: "We remain committed to maintaining best-in-class compliance standards and will continuously enhance our capabilities."
Binance has recently emphasised its focus on compliance following a spate of regulatory problems for the company, cumulating in a US prison sentence last year for founder Changpeng "CZ" Zhao after he pleaded guilty to violating anti-money laundering requirements.
The world's largest crypto exchange also agreed to forfeit $2.5 billion to the government and pay a fine of $1.8 billion in a settlement with various US agencies.