AUSTRAC has accepted an Enforceable Undertaking (EU) from PayPal Australia Pty Ltd (PayPal) 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.
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 Chief Executive Officer, Nicole Rose, said that the enforceable undertaking 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,” Ms 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.”
Details of the EU are available on the AUSTRAC website.
AUSTRAC’s regulatory approach
AUSTRAC uses a range of regulatory tools and powers to ensure compliance. Interactions are tailored based on the level of risk posed by the entities we regulate and their circumstances, and range from education and collaboration, through to regulatory interventions and enforcement.
AUSTRAC enforcement powers include:
- issuing infringement notices
- issuing remedial directions, which require a reporting entity to take specified action to ensure compliance
- accepting enforceable undertakings detailing the specific actions a reporting entity will commence or cease in order to comply with the AML/CTF Act
- seeking injunctions and/or civil penalty orders in the Federal Court.
AUSTRAC does not provide public commentary on individual reporting entities’ compliance.
Details of the consequences of not complying are available on the AUSTRAC website.
AUSTRAC (the Australian Transaction Reports and Analysis Centre) is the Australian Government agency responsible for detecting, deterring and disrupting criminal abuse of the financial system to protect the community from serious and organised crime.
Through strong regulation, and enhanced intelligence capabilities, AUSTRAC collects and analyses financial reports and information to generate financial intelligence.