AUSTRAC accepts enforceable undertaking from PayPal Australia

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has announced it has accepted an enforceable undertaking from PayPal Australia Pty Ltd.

PayPal Australia offered the enforceable undertaking to AUSTRAC's Chief Executive Officer as a legally binding commitment to address its breaches of Australia's anti-money laundering and counter-terrorism financing (AML/CTF) laws.

Chief Executive Officer, John Schmidt, said: "An assessment of PayPal Australia revealed deficiencies in the systems PayPal had in place to assess and manage its money laundering and terrorism financing risk."

Within the terms of the enforceable undertaking, PayPal Australia has agreed to:

  • strengthen its existing systems and controls to comply with risk assessment requirements; and
  • submit to AUSTRAC an independent expert report detailing PayPal Australia's compliance with AML/CTF laws and a plan to remedy identified deficiencies.

AUSTRAC's Chief Executive Officer is empowered to accept enforceable undertakings as a means of ensuring compliance with the AML/CTF Act, including as an alternative to taking criminal or civil enforcement action.

26 November, 2009


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