AUSTRAC accepts enforceable undertaking from PayPal Australia
23 November 2009
AUSTRAC today 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.
'The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 underpins Australia's risk-based AML/CTF regime which recognises that reporting entities are best-placed to assess the risk of their customers, products and services becoming vulnerable to criminal activity.
'Compliance with the Act's risk assessment requirements is crucial in Australia's fight against money laundering and terrorism financing. The acceptance of this undertaking is a clear sign to industry that they must have robust systems and controls in place to manage and mitigate the risks their business may face.'
Within the terms of the enforceable undertaking, PayPal Australia has agreed to:
- strengthen its existing systems and controls to comply with risk assessment requirements
- 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.
'This is the third enforceable undertaking AUSTRAC has accepted', Mr Schmidt said, 'and further confirms our intention to secure compliance with the Act through enforcement action if necessary.'
The enforceable undertaking can be viewed on the AUSTRAC website at: http://www.austrac.gov.au/enforceable_undertakings.html.
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About AUSTRAC:
The Australian Transaction Reports and Analysis Centre (AUSTRAC), in fighting global crime, assists in protecting the integrity of the Australian financial system. AUSTRAC is a world-renowned and respected financial intelligence unit and is Australia's anti-money laundering and counter-terrorism financing regulator.
Note:
AUSTRAC's Chief Executive Officer John Schmidt is available for interview.
Media enquiries:
Ismene Kongos
Telephone: +61 3 8636 0577
Email: Ismene.Kongos@austrac.gov.au
