AUSTRAC extends PayPal Australia audit until Aug 31, 2020
AUSTRAC has granted the extension taking into account the scope of the audit, the size and complexity of PayPal Australia’s business operations.
The audit of PayPal Australia has been extended due to a request by the company, AUSTRAC said today.
As FinanceFeeds has reported, in September 2019, AUSTRAC ordered the appointment of an external auditor to examine ongoing concerns regarding PayPal Australia’s compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. These concerns relate to PayPal Australia’s compliance with its International Funds Transfer Instruction reporting obligations.
The external auditor has to report to AUSTRAC within 120 days of being appointed and has to examine PayPal Australia’s compliance with its:
- AML/CTF Program obligations;
- International Funds Transfer Instruction (IFTI) reporting obligations;
- Record keeping obligations.
The results of the audit are set to assist PayPal with its compliance, but also inform AUSTRAC whether any further regulatory action is required. The extent of the auditor’s check is determined by AUSTRAC and the expenses will be covered by PayPal Australia.
On February 27, 2020, AUSTRAC granted an extension to the appointment of the external auditor until August 31, 2020 following a request from PayPal. AUSTRAC has approved the request for an extension taking into account the scope of the audit, the size and complexity of PayPal Australia’s business operations and the overlap with PayPal’s international operations.
The extension is poised to allow PayPal Australia and the external auditor to fully examine their compliance with the AML/CTF Act.