An American fund transfer company PayPal is being audited by the financial watchdog AUSTRAC (Australian Transaction Reports and Analysis Centre) to check whether the online money transfer giant complies with the local counter-terrorism financing and anti-money laundering laws or not.
The company is accused of being involved in online child abuse activities and breaching the AML laws. While PayPal denies the allegations, the AUTRAC hints that certain transactions carried out via PayPal may have been linked with child sex exploitation activities.
AUSTRAC has ordered the company to appoint an external auditor to examine the suspicious transactions. It has been reported that the platform is being used to buy and sell online child abuse material, mainly in the Philippines. The external auditor will be obligated to report to the AUSTRAC within 120 days of being appointed. The Australian authority believes that this would aid PayPal Australia with its compliance and notify AUSTRAC about a need for any further regulatory engagement.
The NASDAQ trading company has been operating in Australia since 2005 and has a customer base over 7 million.
Source – CROWDFUND INSIDER