Austrac gives clean chit to Afterpay following anti-money laundering inquiry

money laundering | iTMunch

After concluding its investigation into the Australian BNPL service Afterpay, The Australian Transaction Reports and Analysis Centre (Austrac) has decided to not pursue any further regulatory action against it. In June 2019, the Austrac had requested the appointment of an external auditor into Australian operations of buy now pay later company Afterpay. The Australian regulator specifically asked to look into Afterpay’s compliance with the “Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).”

Details of Afterpay Austrac investigation

Austrac said, in response to the recommendations and findings found in the external audit report, BNPL darling Afterpay uplifted its financial crime function and AML/CTF compliance framework and finished all remediation required for compliance.

Austrac also said that it has reiterated the importance for BNPL Afterpay to be in alignment with its compliance obligations from now on and that it will continue to work together to make sure it understands the obligations of compliance it has and its role in fighting financial crime.

After analyzing and considering the response and the report by Afterpay, the regulatory agency has decided to not undertake any further action against it. Austrac also took this as an opportunity to remind the new and emerging fintech service businesses about the obligations they have under the AML/CTF Act.

SEE ALSO: Aussie payments fintech IntegraPay acquired by global fintech leader

Other financial investigations by Austrac

In September, Austrac requested a similar investigation of online payments system PayPal, with the investigation to primarily focus on ‘ongoing concerns’ with regards to the Australian compliance with the AML/CTF Act arm. The concerns related to compliance of PayPal Australia with the company’s International Funds Transfer Instruction (IFTI) reporting obligations. However, in March, the regulatory announced that an extension has been granted to the auditors while ‘taking into consideration the size, scope, and complexity’ of the business operations of PayPal Australia and its overlap with the international operations of PayPal. 

Austrac said that the extension will enable PayPal Australia (and the external auditor) to completely examine their compliance with the AML/CTF Act. In September, Austrac also reached an agreement with Australian bank Westpac to settle its AML/CTF financing allegations raised by the watchdog in November 2019.

SEE ALSO: Aussie fintech Bravura Solutions acquires Delta Financial Systems 

For more updates and latest tech news, keep reading iTMunch

Image Courtesy: Alexas Fotos — Pixabay (CC0)

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Riddhi Jain is a technology content writer. She is based in India and has been working as a content writer since 2018. Riddhi has been writing content in the tech domain since May 2020 and can’t get enough of it. Riddhi has pursued most of her education from her hometown, Indore. She has graduated as a Bachelor of Business Administration and discovered her love for writing blogs while pursuing an internship during college. Once she discovered her love for writing, she went on to improve this skill set (and hasn’t stopped since). Riddhi’s writing relationship with iTMunch began in May 2020. This is where she developed a knack for writing content for the technology domain. She's an expert in tech content writing who has written over 700 blogs for iTMunch in just a year. Riddhi loves diving deep into tech sub-domains like financial technology, marketing technology, HR technology, Artificial Intelligence and gaming technology. She loves staying updated with the latest and upcoming trends in digital marketing, digital payments, fintech, gaming, web design and app development. She cherishes writing about futuristic technologies like blockchain and cryptocurrency, NFTs, Internet of Things, Facial Recognition, Machine Learning, Edge Computing, etc. Riddhi also likes to keep an eye on what’s going on with the tech titans like Google, Facebook and Apple. One of her major interests is in staying updated with the latest IT startups and the groundbreaking technologies they’re coming up with. When Riddhi is not writing content, she is binging on documentaries on Netflix (check out ‘The Great Hack’, ‘Seaspiracy’, and ‘What the Health’). She also likes reading books once in a while (Yuval Noah Harari and Michelle Magorian are some of her favorite authors). Riddhi also likes listening to podcasts like The Tim Ferriss Show (do listen to the ones with guest Naval Ravikant) and The Joe Rogan Experience.