Airwallex: $12 Billion Fintech Startup Probed Over Anti-Money Laundering Compliance

A $12 billion Australian-founded fintech company is facing a comprehensive audit by the nation's financial crimes regulator over suspected failures in its anti-money laundering systems. The Australian Transaction Reports and Analysis Centre (AUSTRAC) has ordered an external review of Airwallex, citing concerns about the payments giant's ability to monitor transactions and identify suspicious activity across its global network.

The regulatory action comes as Airwallex, which processes more than $235 billion in payments annually across 120 countries, prepares for a potential stock market listing in the United States. The audit represents a significant challenge for one of Australia's most valuable startups, which has attracted major venture capital backing and positioned itself as a leader in cross-border payments technology.

Background and Context

Founded in Melbourne a decade ago by chief executive Jack Zhang and co-founders, Airwallex has evolved from a local startup into a global payments platform with dual headquarters in Singapore and San Francisco. The company's rapid growth has been powered by its promise to make international transactions faster and more accessible for small businesses and individuals, processing an estimated $345 billion in payments annually.

The fintech's ascent has attracted substantial investment from prominent venture capital firms including Airtree Ventures, Square Peg Capital, and Blackbird Ventures. In December, the company raised $330 million, lifting its valuation to $8 billion and cementing its status as one of Australia's most valuable technology companies.

Key Figures and Entities

At the center of the regulatory scrutiny is Airwallex's leadership team and compliance infrastructure. According to AUSTRAC chief executive Brendan Thomas, the agency believes the company has "not demonstrated an acceptable understanding" of its customer base or the reporting requirements under Australian law. Thomas specifically highlighted concerns about Airwallex's transaction monitoring program and its capacity to identify and report suspicious matters.

The company's response has been defensive but cooperative. An Airwallex spokesman stated the company "welcomes this audit as a transparent opportunity to independently validate our [anti-money laundering and counterterrorism financing] program" and pointed to a 2024 audit that found "appropriate systems and controls" were in place. The company maintains "zero tolerance for financial crime or illicit activity" and claims to terminate non-compliant customers promptly.

Legal and Financial Mechanisms

The audit process will be conducted at Airwallex's expense over 180 days, with the external auditor reporting findings directly to AUSTRAC. The regulator's statement emphasizes that anti-money laundering compliance "is not a back-office function" but requires "clear accountability, properly authorised staff who can submit reports and sufficient resourcing to support timely and accurate reporting."

AUSTRAC's investigation focuses on whether Airwallex has adequate systems to detect and prevent the movement of illicit funds through its network. The agency specifically mentioned concerns about criminal proceeds from fraud, scams, illicit tobacco, drug trafficking, and payments related to child sexual exploitation. The regulatory framework requires financial institutions to actively manage money laundering risks, maintain robust customer verification processes, and file suspicious activity reports promptly.

International Implications and Policy Response

The AUSTRAC action against Airwallex occurs amid increasing global scrutiny of fintech companies' role in preventing financial crime. As cross-border payment platforms grow in scale and sophistication, regulators worldwide are grappling with how to enforce traditional compliance requirements in rapidly evolving technological environments.

For Airwallex, the audit complicates its ambitions for a US stock market listing, which Zhang indicated in a 2024 CNBC interview could occur within two years. The company has also faced recent controversies, including a public dispute with Silicon Valley venture capitalist Keith Rabois, who accused Airwallex of exposing sensitive American data to the Chinese government—allegations Zhang denied as "inaccurate claims."

The case highlights broader regulatory challenges in ensuring that high-growth fintech companies maintain robust compliance systems as they expand globally. It also raises questions about whether current regulatory frameworks are adequate to police the increasingly complex web of international digital payments that now facilitate trillions in annual transactions.

Sources

This report draws on statements from AUSTRAC, company responses from Airwallex, and news reporting from The Sydney Morning Herald and The Age published in January 2026. Additional context comes from public statements by company executives and reporting on venture capital investments and company valuations.