The Australian Transaction reports and Analysis Centre (AUSTRAC) has imposed one of its first enforceable undertakings related to obligations under Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws.
The regulator announced that the enforceable undertaking had been entered into by online payments system PayPal Australia Pty Ltd after an AUSTRAC assessment revealed deficiencies in the systems used by PayPal to assess and manage its money laundering and terrorism financing risk.
Commenting on the enforceable undertaking, AUSTRAC chief executive John Schmidt said it was a clear sign to companies operating in the industry that they had to have robust systems and controls in place to manage and mitigate the risks their businesses might face.
He said the enforceable undertaking was accepted by AUSTRAC and confirmed its intention to secure compliance with the Act through enforcement action if necessary.
