Wednesday, October 28, 2020

Paypal in trouble for money laundering and child exploitation


Australia’s financial intelligence agency on Tuesday ordered an audit of global money transfers by digital payments giant PayPal Holdings Inc amid concerns they are facilitating serious crimes, including child exploitation.

AUSTRAC, which is tasked with ensuring compliance with the country’s anti-money laundering and counter-terrorism laws, ordered PayPal’s Australian unit to appoint an external auditor to look at the fund transfers.

The agency singled out the risk of child sex exploitation as it announced the audit, which PayPal must pay for before reporting back within 120 days.

“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 criminals and terrorists,” AUSTRAC Chief Executive Nicole Rose said in a statement.

- Advertisement -

PayPal said its Australian unit reported itself to authorities after an internal review found an issue with the way it reported international fund transfers to AUSTRAC.

“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,” PayPal’s senior communications director, Amanda Christine Miller, said in an email.

The audit would have no impact on customers, Miller added.

U.S.-based PayPal operates a worldwide online payment service which connects buyers and sellers through a secure online wallet linked to both parties’ bank accounts.

- Advertisement -

A preliminary report from a separate review ordered by AUSTRAC into buy-now-pay-later company Afterpay Touch Group in June, citing suspected non-compliance with anti-money laundering and counter-terrorism financing laws, was due to be handed to AUSTRAC on Tuesday.

Buy-now-pay-later (BNPL) players like Afterpay let shoppers purchase products without paying upfront, and without the regulatory hurdle of applying for a credit card or loan, raising concerns about shopper identity.

AUSTRAC and Afterpay did not immediately respond to questions about that review.

Australian regulators are under sustained pressure to act after the Royal Commission inquiry into financial sector misconduct widely condemned their performance in recent years. The Royal Commission found that when misconduct by financial institutions was revealed, it either went unpunished or the regulatory consequences did not reflect the seriousness of what had been done.


Beam Suntory Inc. fined $19.6 million in foreign bribery case

Beam Suntory Inc. (Beam), a Chicago-based company that produces and sells distilled beverages, has agreed to pay a criminal monetary penalty of $19,572,885 to...

Julius Baer to deny two former CEOs their bonuses over money laundering scandal

Julius Baer will withhold millions of francs in bonuses from its former chief executives Boris Collardi and Bernhard Hodler, as a result of a...

Goldman Sachs executives to cover part payments of $3 billion fines in 1MDB scandal

Nine current or former Goldman Sachs executives, including CEO David Solomon, will have to pay back hundreds of millions of dollars in compensation over...

Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

Hong Kong fines Goldman Sachs $350 million over 1MDB scandal

Goldman Sachs ignored multiple red flags over the multibillion-dollar fundraisings it arranged for state fund 1Malaysia Development Berhad, Hong Kong’s financial regulator said on...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World


Latest News

This Week

Bribery trial of former San Angelo police chief Tim Vasquez delayed until 2021

The trial of former San Angelo police chief Tim Vasquez will not happen until 2021, according to court documents. The trial, originally set for...

Actress Felicity Huffman complete full sentence for role in college admissions scam

Felicity Huffman has completed her full sentence for her involvement in the college admissions scandal. As of Sunday, she has finished her sentence, which included jail...

UK regulators fine Goldman Sachs £97 million over 1MDB scandal

Goldman Sachs International has been fined £96.6m by UK regulators for risk management failures connected to the 1MDB scandal. The Financial Conduct Authority and Prudential...

Former Jacksonville City Council members set for sentencing in fraud case

Former Jacksonville City Council members Katrina Brown and Reggie Brown are scheduled to be in federal court Tuesday to begin a hearing on their...

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks