National security group urges Congress to investigate Airwallex ties to CCP

(The Center Square) – A national security group wants Congress to investigate Airwallex over its ties to China.

State Armor Chief Executive Officer Michael Lucci sent a letter to several congressional leaders urging action.

The letter went to U.S. Sen. Mike Crapo, R-Idaho, U.S. Sen. Ron Wyden, D-Oregon, U.S. Rep. French Hill, R-Arkansas, U.S. Rep. Maxine Waters, D-California, and others.

“I write to respectfully urge Congress to open a formal investigation into Airwallex, a global payments company that has become deeply embedded in the U.S. financial technology ecosystem while reportedly maintaining substantial ownership, operational, and workforce ties to the People’s Republic of China,” Lucci wrote.

Airwallex provides payment services to businesses. The company started in Australia and now has headquarters in Singapore and San Francisco.

State Armor says Congress should examine whether China-based employees or affiliates can access financial or personal data of U.S. customers.

“Airwallex markets itself as an Australian-founded fintech company, yet a significant portion of its workforce and technical operations reportedly remain concentrated in mainland China and  Hong Kong,” Lucci wrote.

The letter says that about 40% of the company’s employees reportedly work in mainland China and Hong Kong. That includes employees tied to engineering, payments operations and compliance.

“Airwallex’s access to highly sensitive American financial and personal data must be coupled with absolute data security against the insidious Chinese Communist Party. Airwallex should not manage any information connected to our national security and defense-related companies through operations or employees in China," Lucci said in a statement provided to The Center Square. "The company operates invisibly in the backend infrastructure of applications and payment systems Americans rely upon every day, meaning that if Airwallex is handing over American data to Communist China, it is being done without the knowledge or knowing consent of American consumers. We cannot allow Americans’ sensitive data to be placed within reach of the Chinese government or entities subject to Chinese intelligence laws. Congress and federal regulators must investigate this immediately.”

Lucci also pointed to China’s National Intelligence Law. The law requires Chinese organizations and citizens to support the country’s intelligence work.

“If Airwallex personnel or affiliated entities in China can access customer systems or data, then sensitive information involving U.S. companies could be exposed to adversary foreign government demands,” Lucci wrote.

State Armor also raised concerns about Tencent Holdings’ investment in Airwallex. Tencent landed on the U.S. Department of Defense’s list of Chinese military companies in January 2025.

Airwallex has recently moved some employees out of China as it expands in the United States, FStech reported last week, citing The Financial Times.

More from this section

NASA’s ‘Son of Concorde’ could make first supersonic flight in days

We Saved $2,250 a Year by Reviewing Our Insurance Coverage

New vaccine slashes risk of skin cancer recurring by nearly half

A company spokesman told The Financial Times that data security drove the moves.

“When US Executive Order 14117 established new requirements around cross-border data flows in 2024, employee realignment became part of our growth plan, in line with broader industry practice,” the spokesman said.

The spokesman added that Airwallex still has a “significant presence in Shanghai and Hong Kong” and recruits from China’s “world-class engineering and technical talent.”

State Armor wants Congress to launch a bipartisan investigation. The group also wants Congress to examine Airwallex’s work with U.S. artificial intelligence and defense companies and request a review by the Committee on Foreign Investment in the United States.

U.S. Sen. Tom Cotton, R-Arkansas, also raised concerns about Airwallex last December.

“I respectfully request that the Department open a full investigation into whether Airwallex data is being accessed by the Chinese Communist Party,” Cotton wrote in a letter to then-U.S. Attorney General Pam Bondi.

Cotton said Airwallex processes sensitive data for major U.S. companies.

Airwallex has also faced scrutiny in Australia.

In January, AUSTRAC, Australia’s financial intelligence agency, ordered Airwallex to appoint an outside auditor. The auditor will review whether the company has followed anti-money laundering and counter-terrorism financing rules.

“We take this action where we suspect serious non-compliance, because we expect businesses to be actively managing their AML/CTF obligations,” AUSTRAC Chief Executive Officer Brendan Thomas said.

Airwallex said it would cooperate with the audit.

“Airwallex is committed to the highest standards of regulatory compliance and we welcome this audit as a transparent opportunity to independently validate our AML/CTF program,” the company said.