Australia orders audit of PayPal’s reporting compliance
The Australian Transaction Reports and Analysis Centre (Austrac) has ordered an audit of PayPal Australia’s compliance with local anti-money laundering and counter-terrorism financing laws, writes Jane Connolly.
Reuters reports that the payment giant’s Australian unit referred itself to the financial intelligence agency, after an internal review uncovered an issue with the reporting of international fund transfers to Austrac.
PayPal tells Reuters it is not true that the audit was prompted by the discovery of child sex exploitation connections.
The company has 120 days to appoint an external auditor at its own expense and report back on the fund transfers.
Austrac chief executive Nicole Rose says: “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 criminal and terrorists.”
PayPal’s senior communications director, Amanda Christine Miller, says: “We are working in full cooperation with Austrac to remediate this reporting system issue and to undertake the audit as outlined by Austrac in the time specified.”
She added that the audit will have no impact on PayPal customers.