AUSTRAC Orders Airwallex Audit Over Transaction Monitoring Failures
Australia's regulator flags Airwallex's transaction monitoring gaps across jurisdictions, one day after its Korea expansion. Regional fintech enforcement intensifies.
Australia's financial crime watchdog ordered an external audit of payment platform Airwallex on January 23, 2026, citing concerns that the fintech's transaction monitoring program fails to address the full range of risks across its multi-jurisdiction operations.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) issued the audit order under Section 162 of the country's Anti-Money Laundering and Counter-Terrorism Financing Act. The regulator specifically flagged inadequate suspicious activity reporting and insufficient oversight of compliance obligations at the San Francisco and Singapore co-headquartered company.
Transaction Monitoring Gaps Trigger Regulatory Action
AUSTRAC CEO Brendan Thomas stated that concerns extend to how well Airwallex identifies and reports suspicious matters, particularly given the platform facilitates fund transfers to multiple jurisdictions. The regulator noted that Airwallex has not properly defined who its customers are and what reporting may be required.
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The timing is notable. Airwallex announced its acquisition of South Korean payment firm Paynuri just one day before the audit order became public. The deal secured local payment licenses and foreign exchange business registration, enabling direct operations in South Korea as part of the company's Asian expansion strategy.
In response, Airwallex said it will cooperate fully with AUSTRAC's external auditor review. The company emphasized that an independent auditor validated its compliance program in 2025 following an AUSTRAC audit of its anti-money laundering and counter-terrorism financing program in 2024.
Regional Pattern of Fintech Enforcement Emerges
The Airwallex audit follows AUSTRAC's September 2025 penalty against Revolut Australia, which paid $123,000 for anti-money laundering and counter-terrorism financing program failures. The consistent enforcement signals that Australian regulators are prioritizing transaction monitoring calibration across payment platforms with cross-border operations.
The scrutiny comes as Airwallex experiences rapid growth across Asia-Pacific. The company's APAC revenue grew 85% year-over-year in 2025, while transaction volumes increased 71% during the same period. Backed by investors including Tencent, DST Global, and Hillhouse, Airwallex maintains an $8 billion valuation following its 2025 Series G funding round.
AUSTRAC emphasized that audits help prevent criminal exploitation of payment systems, including fraud and drug trafficking. The regulator's focus on transaction monitoring reflects broader concerns about whether compliance infrastructure can keep pace with rapid scaling.
Compliance Becomes Critical Scaling Challenge
Airwallex hired 20 compliance staff in South Korea following the Paynuri acquisition to manage licensing requirements and foreign exchange registration. The company also faces ongoing requirements from China's People's Bank of China and State Administration of Foreign Exchange for policy updates and regulator liaison.
The audit report must be submitted to AUSTRAC within 180 days. For marketing communications teams at financial services firms across Asia, the case illustrates how expansion into new markets intensifies both regulatory scrutiny and reputational risk exposure. Companies facilitating cross-border payments now face elevated expectations for suspicious activity identification and reporting protocols.
As Asia-Pacific regulators coordinate enforcement efforts, payment platforms must balance growth ambitions with compliance infrastructure investments. The Airwallex audit demonstrates that rapid geographic expansion and revenue growth no longer provide insulation from regulatory action when transaction monitoring gaps emerge.
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