Australia financial crime watchdog orders audit of Afterpay
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

Read more:

AML: Austrac update on new anti-money laundering laws

Money laundering: Australia’s NAB undergoing investigative issues on KYC, regulator involved

AML going south? Money laundering and “non-financial businesses and professions” in Australia

You can claim CPD minutes for this content, by signing up to our CPD Wallet


You must be logged in to post a comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed.