Australia’s reporting and transactions Center has directed Binance Australia to appoint an external auditor due to serious concerns about the controls of funding against money laundering and CRYPO EXCHAGE’s Funding (AML/CTF).
InvestbyBit Pty Ltd, Binance Global’s Australian arm, is a Austrac digital exchange provider.
In volume of transactions is the largest central encryption exchange in the world. Founded in 2017, holds regulatory approvals or rights in approximately 20 jurisdictions.
Austrac CEO Brendan Thomas said that Austrac 2024’s national risk assessment highlights the growing vulnerability of digital currencies in criminal abuse and the action against Binance follows the regulatory commitment to the entire priority sector.
Mr. Thomas said:
“Businesses can have systems and processes that apply to multiple jurisdictions – but must reflect local regulatory requirements. Systems must be adapted to regulatory requirements and not to the reverse.
Understanding specific risks of crime in Australian context is vital to ensure that they meet their reference obligations here. “
Austrac’s concerns were caused by various issues, such as Binance’s latest independent review, which was limited to scope in size, business offers and dangers.
Austrac has also pointed out concerns about the high turnover of binance staff and the lack of local resources and supervision of senior executives, raising questions about the adequacy of the AML/CTF governance.
Binance Australia has 28 days to set external auditors for Austrac’s assessment and choice.