AUSTRAC orders audit to Binance Australia: 28 days to appoint independent auditors

Regulatory tightening in Australia: AUSTRAC has ordered Binance Australia to appoint external auditors within 28 days from the publication of the statement, for a thorough review of the AML/CTF controls.

The authority highlights «serious concerns» about the effectiveness of anti-money laundering and counter-terrorism financing measures, bringing the compliance bar back to the forefront for exchanges active in the country. In this context, the message to regulated entities is quite clear.

According to the AUSTRAC statement published on August 22, 2025, the authority has set a 28-day deadline for the proposal of external auditors.

Industry analysts note that, in light of the FATF Targeted Update (July 2024), about 75% of jurisdictions were still partially or non-compliant with the standards applicable to VASPs, highlighting widespread issues in the implementation of AML/CTF measures globally. Context source: FATF – Targeted Update (July 2024).

What AUSTRAC disputes: the key points

According to the official AUSTRAC statement, the critical issues concern various operational and governance aspects. In particular:

• Limited scope of the latest independent review compared to the size and risk profile of the operator.
• High staff turnover and shortage of local resources, with a deficit of senior level supervision.
• Concerns about transaction monitoring and the quality/timing of suspicious activity reports (SMR).

AUSTRAC has also specified that the audit must assess the actual effectiveness of the AML/CTF program and its compliance with regulatory requirements. It should be noted that the verification must be timely and independent. Source: AUSTRAC release (August 22, 2025).

The regulatory framework: AML/CTF Act 2006 and obligations for exchanges

The operators registered as https://www.austrac.gov.au/business/your-industry/digital-currency-cryptocurrency/digital-currency-exchange-providers in Australia are subject to the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006. Among the main obligations:

• Risk-based approach and documented and updated AML/CTF program (in line with international guidelines such as the FATF Guidance).
• Customer due diligence (KYC) initial and continuous monitoring of the clientele.
• Transaction monitoring and sending of Suspicious Matter Reports to AUSTRAC.
• Periodic independent review of the AML/CTF program and appointment of a compliance officer.

References: AML/CTF Act 2006; AUSTRAC guide on AML/CTF obligations.

Why the external audit was imposed

The objective is to independently verify if the controls of Binance Australia are proportional to the risks and function in practice. An interesting aspect is the request to precisely identify operational gaps, propose corrective actions, and set realistic implementation timelines.

How the review will take place: the 4 essential phases

1. Nomination and independence: Binance Australia proposes a list of auditors; AUSTRAC conducts the assessment to ensure independence and competence.
2. Scoping: definition of the scope based on products, processes, volumes, risks, and IT systems. In this step, the purpose is adjusted to the operational profile.
3. Operational analysis: test on KYC, transaction monitoring, reporting, sanctions screening, governance, and local resources.
4. Final report: release of recommendations and remediation plan with priorities and deadlines. It should be noted that the follow-up will be an integral part.

Impact for Binance and the sector

• Corrective actions on onboarding and monitoring processes.
• Greater operational transparency and strengthening of local governance.
• Possible increase in compliance costs and technological adjustments.
• Signal of vigilance to the global market of exchange.

Timeline and upcoming deadlines

• Within 28 days: Binance Australia must propose candidates for external auditors (deadline set by the announcement on August 22, 2025; indicative deadline: September 19, 2025).
• Approval by AUSTRAC and start of the independent audit.
• Delivery of the report with recommendations and remediation plan.
• Follow‑up: verification of the implementation and possible further inspections.

Possible scenarios after the audit

• Operational prescriptions and additional monitoring by AUSTRAC.
• Binding directives and, in case of serious issues, possible civil actions for violations of the AML/CTF Act.
• Limitations on products/services or, in extreme cases, suspension of specific activities.

Highlighted risks: financial crime and illicit use of crypto

The Australian authorities have long reported the risks of money laundering and terrorism financing associated with the use of cryptocurrencies.

An external audit can help reduce the risk surface by identifying inefficiencies and strengthening first and second line controls. It should be remembered that prevention also involves solid and measurable processes (see international recommendations from the FATF Guidance).

Who is involved

The measure concerns Investbybit Pty Ltd, the entity registered in Australia connected to the Binance group. The audit order is part of AUSTRAC’s supervisory activity on DCE operators, with increasing attention to the maintenance of internal controls.

Operational guidelines without FAQ

When an audit can lead to the closure of an exchange

The closure represents an extrema ratio. Generally, the audit produces recommendations and compliance obligations; the cessation of activity occurs only in cases of serious and persistent non-compliance or for repeated violations.

Selection of the auditor and guarantees of independence

The company proposes the candidates, while AUSTRAC verifies and approves the name, ensuring the absence of conflicts of interest and the necessary expertise in the crypto sector. In this context, independence remains the decisive criterion.

Key Data

• 28 days for the proposal of external reviewers from the date of the announcement (AUSTRAC announcement of August 22, 2025; estimated deadline: September 19, 2025).
• Subject: verify AML/CTF controls, the quality of independent reviews, resources, and local supervision.
• Authority: AUSTRAC (Australian AML/CTF regulator).
• Entity: Investbybit Pty Ltd (connected to Binance Australia).
• International Context: according to the Targeted Update FATF (July 2024), a large majority of jurisdictions showed difficulties in implementing the standards for VASP (indicative quota: ~75% partially or non-compliant), highlighting the stringent regulatory context at a global level.

Sources

• AUSTRAC – Media release (August 22, 2025)
• Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006
• AUSTRAC Guide to AML/CTF Obligations
• FATF – Targeted Update on Implementation of the FATF Standards on VAs and VASPs (2024)
• Reuters – Australia watchdog orders Binance unit to conduct audit (August 22, 2025)

Note: At the moment, updated public quantitative data on specific transaction volumes or the number of local employees of Investbybit/Binance Australia are not available. The piece will be updated in case of new official communications or release of the audit report.