PayPal Australia is set to be audited to address “ongoing concerns” around its compliance with Australian anti-money laundering and counter-terrorism financing (AML-CTF) laws.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) today ordered the appointment of an external auditor, who must now report within 120 days.
“These concerns relate to PayPal Australia’s compliance with its International Funds Transfer Instruction reporting obligations, which require regulated entities to report the transfer of funds or property to or from Australia,” AUSTRAC said in a statement.
“International Funds Transfer Instructions reported by the financial services sector provide AUSTRAC with vital intelligence that enables AUSTRAC and its partners to combat serious crimes such as child sex exploitation.”
AUSTRAC CEO Nicole Rose said Paypal itself was “an important partner” for AUSTRAC “and our law enforcement partners [to] stop the movement of money to criminals and terrorists.”
“However, when we suspect non-compliance AUSTRAC will take action to protect the Australian community,” Rose said.
The outcomes of the audit “will assist PayPal with its compliance, but also inform AUSTRAC whether any further regulatory action is required,” the agency said.
“We will continue to work closely with PayPal during this process to address any compliance concerns,” Rose said.