13 Jun 2019
Australia’s financial crime watchdog said it will audit buy-now-pay-later provider Afterpay Touch Group Ltd to ensure it was complying with anti-money-laundering and counter-terrorism financing laws, sending the company’s shares down.
“The audit will help identify if Afterpay has developed and implemented the systems and controls it needs to ensure it complies with its obligations,” AUSTRAC Chief Executive Officer Nicole Rose said in a statement.
AUSTRAC would use the audit to determine any compliance issues and whether regulatory action was needed, AUSTRAC said.
The agency did not say what prompted the audit, but added in its statement the buy-now-pay-later sector had experienced rapid growth and new financial players needed to be educated about their obligations.
Shares of Afterpay were down 7% in early trading, while the broader Australian market was flat.
Afterpay said it had “proactively engaged with AUSTRAC” for several months about its AML/CTF compliance and that it had measures in place to comply with the law, including strict spending limits.
By Wayne Cole and Byron Kaye, Reuters, 12 June 2019
Read more at Reuters
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