Australia's financial intelligence agency has ordered Airwallex to hire an external auditor to examine its anti-money laundering and counter-terrorism financing compliance, citing concerns that the payment platform's transaction monitoring systems haven't kept pace with its risk profile.

Airwallex Faces Regulatory Audit as AUSTRAC Raises Compliance Concerns

AUSTRAC, the Australian Transaction Reports and Analysis Centre, instructed the company today (Thursday) to appoint an auditor who will investigate whether Airwallex has violated multiple sections of the country's AML/CTF Act.

The agency suspects the company failed to properly monitor transactions, identify customers, report suspicious activity, and maintain adequate compliance oversight from January 2024 through this month.

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Bradley Brown, AUSTRAC's National Manager of Regulatory Operations, signed the enforcement notice requiring Airwallex to engage an auditor within 14 days and submit findings within 180 days. The company will pay for the audit.

Transaction Monitoring Under Scrutiny

AUSTRAC's notice questions whether Airwallex's transaction monitoring program has been properly calibrated to detect the range of financial crimes that could flow through its platform. The audit will examine the company's ability to identify activity linked to fraud, scams, illicit tobacco, drug trafficking, and child sexual exploitation payments .

"As a global payment platform that facilitates the transfer of funds to multiple jurisdictions, AUSTRAC is concerned with Airwallex's transaction monitoring program has not been attuned to the full range of risks it faces and that the company hasn't demonstrated an acceptable understanding of who its customers are and what reporting may be required," AUSTRAC Chief Executive Officer Brendan Thomas said.

The agency also raised questions about how effectively Airwallex identifies and reports suspicious matters, and whether senior management provides adequate oversight of these obligations.

Airwallex has faced regulatory scrutiny before, though the company has continued its expansion into new markets and product lines.

Timing Raises Questions

The enforcement action lands awkwardly for Airwallex. Just one day before AUSTRAC's announcement, the company revealed it had acquired Paynuri, a South Korean entity holding payment gateway, prepaid electronic payment, and foreign exchange licenses. The deal positions Airwallex to serve Korean businesses expanding internationally while helping global companies operate in Korea's market.

Arnold Chan, Airwallex's General Manager for APAC, called the Korean acquisition "a pivotal milestone" in a statement on Tuesday. The company said it plans to hire 20 employees in Korea by year-end and launch global business accounts and payment acquiring services there in 2026.

Airwallex recently closed a Series G funding round that valued the company at $8 billion, about 30% higher than its previous valuation. The company reported $1.2 billion in annualized revenue and $266 billion in annualized transaction volume as of December 2025. In the Asia-Pacific region, revenue grew 85% year-on-year while transaction volume increased 71% in 2025.

Broader Enforcement Pattern

The Airwallex audit follows other enforcement actions in Australia's fintech sector. AUSTRAC fined Revolut Australia $123,000 in September 2025 for delayed compliance reporting, though the agency noted Revolut had self-reported the violations and cooperated with regulators.

The audit results will help AUSTRAC determine whether additional regulatory action against Airwallex is warranted.

The company has been expanding aggressively, recently acquiring San Francisco-based billing startup OpenPay to compete with Stripe Billing and Recurly, and securing a Dutch MiFID license to launch money market investments in Europe.

The company also signed a sponsorship deal with Arsenal FC following its latest funding round.