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PayPal Australia ordered by AUSTRAC to have AML audit

AUSTRAC has ordered an external auditor be appointed by PayPal Australia to examine ongoing concerns regarding PayPal Australia’s compliance with the AML/CTF Act.

In the next 120 days, the appointed external auditor must report on PayPal Australia’s compliance with

  •  Anti-Money Laundering/Counter-Terorrism Financing (AML/CTF) Program obligations 
  • International Funds Transfer Instruction (IFTI) reporting obligations
  • Record keeping obligations

According to a PayPal Australia spokesperson, PayPal has self-disclosed “an issue” relating to International Fund Transfer Instructions to AUSTRAC following an internal review. However, AUSTRAC still has “ongoing concerns” about PayPal Australia’s compliance with financial crimes laws  and is dedicated to take further action if it has reason to “suspect non-compliance”.

The action on PayPal follows on from the enforced audit of Afterpay’s AML program in June, and it is the second-high profile enforced audit that AUSTRAC has ordered in as many months.

Three weeks earlier, AUSTRAC issued a $252,000 infringement notice to Compass Global Holdings Pty Ltd (Compass) for failing to report international funds transfers between 2018 and 2019.

Being fully aware of, and meeting your obligations to the standard expected by an AML regulator can present a significant challenge for regulated entities. Are you confident you can explain and defend your AML risk assessment and policy?

Using an automated solution like AML Accelerate reduces the burden of running a compliant AML program. To learn more about how AML Accelerate can help you protect your business and meet your regulatory obligations, contact Arctic Intelligence for a confidential discussion.

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