FCC Flash

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 instruction (IFTI) reporting.

In December 2020, AUSTRAC carried out an enforcement investigation in respect of PayPal’s International Funds Transfer Instruction Reports (IFTIs), focusing on self-identified compliance issues related to the reporting process. AUSTRAC identified issues related to escalation of material issues affecting AML/CFT reporting obligations, risk in reporting failures, outsourced functions, and system capabilities on reporting obligations, etc.