PayPal audited by AUSTRAC for money laundering and terrorism funding compliance concerns

Australia’s top financial services watchdog has ordered PayPal to submit to an external audit after expressing concerns that it had been fully compliant with money laundering and terror laws.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has initiated the audit as it was not certain the payment company had lived up to its self-reporting obligations.

Nicole Rose, CEO of AUSTRAC, said, “Regulated businesses like PayPal Australia, who facilitate payments and transactions for millions of Australian customers every year, play a critical role in helping AUSTRAC and our law enforcement partners stop the movement of money to criminals and terrorists. PayPal is an important partner in the fight against crime. However, when we suspect non-compliance AUSTRAC will take action to protect the Australian community.”

The external auditor must report back to AUSTRAC within 120 days of being appointed. The regulator has said it will work closely with PayPal during the audit, a sentiment supported by the payment company.

PayPal has stated that its Australian unit reported itself to the authorities after an internal review found an issue with how it reported international fund transfers to AUSTRAC.

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