CREATE USER passwords being written to bin log in clear text

#151026 12:37:44 server id 122  end_log_pos 1071839282  Query   thread_id=58251 exec_time=0     error_code=0

SET TIMESTAMP=1445888264/*!*/;

SET @@session.pseudo_thread_id=58251/*!*/;

SET @@session.foreign_key_checks=1, @@session.sql_auto_is_null=0, @@session.unique_checks=1, @@session.autocommit=1/*!*/;

SET @@session.sql_mode=0/*!*/;

SET @@session.auto_increment_increment=1, @@session.auto_increment_offset=1/*!*/;

/*!\C utf8 *//*!*/;

SET @@session.character_set_client=33,@@session.collation_connection=33,@@session.collation_server=8/*!*/;

SET @@session.lc_time_names=0/*!*/;

SET @@session.collation_database=DEFAULT/*!*/;

CREATE USER 'testuser'@'%' IDENTIFIED BY 'my_password_in_clear_text'

/*!*/;

DELIMITER ;

# End of log file

ROLLBACK /* added by mysqlbinlog */;

/*!50003 SET COMPLETION_TYPE=@OLD_COMPLETION_TYPE*/;

/*!50530 SET @@SESSION.PSEUDO_SLAVE_MODE=0*/;

--------------------------------------------

#-----------------------------------

# MASTER REPLICATION OPTIONS

#-----------------------------------

server_id =                                     122

gtid-domain-id=                                 0

log-bin=                                        mariadb.bin

log-basename=                                   ds

binlog-do-db=                                   positioning

binlog-format=                                  ROW

sync_binlog =                                   1

#-----------------------------------

# SLAVE REPLICATION OPTIONS

#-----------------------------------

relay-log-index =                               relay-bin.index

relay-log =                                     relay-bin

replicate-events-marked-for-skip=               FILTER_ON_MASTER

replicate-do-db=                                positioning

log-slave-updates=                              1

gtid-strict-mode=                               1

slave_skip_errors =                             all

innodb_flush_log_at_trx_commit=                 1

slave_parallel_threads =                        4

slave_parallel_max_queued=                      100031072