AUSTRAC has accepted an Enforceable Undertaking (EU) from PayPal Australia to ensure its compliance with Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws.
The EU comes after AUSTRAC identified concerns with PayPal’s systems, controls and governance in relation to its international funds transfer instructions (IFTI) reporting.
AUSTRAC is an Australian government financial intelligence agency responsible for monitoring financial transactions to identify money laundering, organised crime, tax evasion, welfare fraud and terrorism financing.
PayPal has already undertaken significant work, including an independent audit, to strengthen its AML/CTF program and has committed to provide AUSTRAC with independent assurance of the suitability and sustainability of this work as it progresses to business as usual.
AUSTRAC CEO Nicole Rose said that the EU aims to ensure PayPal’s ongoing compliance with their AML/CTF obligations.
“Every business with obligations under the AML/CTF Act must have robust systems in place to ensure they meet their AML/CTF requirements and play their part in protecting Australia’s financial system from criminal exploitation,” Rose said.
“PayPal has cooperated with AUSTRAC throughout the course of our regulatory enquiries demonstrating its commitment to maturing its AML/CTF compliance arrangements.
"AUSTRAC will continue to work with PayPal to ensure that the changes and enhancements made to PayPal’s AML/CTF program are appropriate and sustainable and that the complex and technical work undertaken by PayPal has met its objectives in the real time operational environment.
“AUSTRAC will continue to utilise its supervisory and enforcement powers, to achieve the best outcomes for industry and the Australian people, ensuring frontline businesses do their part to protect Australia’s financial system from criminal exploitation.”