AUSTRAC (Australian Transaction Reports and Analysis Centre) has ordered Binance Australia to appoint an external auditor after identifying serious weaknesses in the exchange's AML/CTF systems.
AUSTRAC Order
AUSTRAC has mandated that Investbybit Pty Ltd, Binance Global's Australian arm, appoint an external auditor due to deficiencies in its AML/CTF systems. AUSTRAC CEO Brendan Thomas stated that the order follows the 2024 National Risk Assessment, which revealed increasing risks of criminal abuse in digital currencies.
Regulation of Cryptocurrency Exchanges
Thomas emphasized that international exchanges must have robust customer identification and transaction monitoring mechanisms, especially in high-risk markets. He also urged digital currency platforms to monitor suspicious activities, including scams and terrorism financing.
International Regulatory Actions Against Binance
Recent actions against Binance are not limited to Australia. In May 2024, Binance was fined CAD$6 million by Canada's Financial Transactions and Reports Analysis Centre for not registering as a foreign money services business, among other legal challenges faced in the UK and the US for non-compliance with AML regulations.
These actions highlight the increasing regulation of cryptocurrency exchanges worldwide to enhance their AML/CTF controls.
