Afterpay in talks with Austrac

  • By AB+F Editorial

Afterpay is currently in talks with Austrac over issues around anti-money laundering and counter-terrorism financing. 

In a statement to the Australian Securities and Exchange on Thursday, Afterpay said that while it “has not identified any money laundering or terrorism financing activity via our systems to date”, it is “currently in dialogue with Austrac regarding issues that Austrac has raised regarding our AML/CTF compliance, the outcome which is yet to be determined”. 

In July, Afterpay changed its AML/CTF framework that would be in step with its regulatory obligations. 

The Buy Now Pay Later business is now in the process of hiring a professional services firm to conduct an independent review of this framework and assess if any improvements can be made.

In other regulatory news, the business also announced that it has cancelled its Australian Credit Licence. The licence was acquired before the report released by ASIC into the BNPL sector, the recent Senate Inquiry and the passage of PIP legislation through the Parliament. 

“The Licence has not ben used, and its cancellation will have no impact on the Afterpay business or service.” 

The statement was made as part of an overall business update for the firm.

Globally, underlying sales were about $4.7 billion in the 11 months to 31 May, up 143 per cent on the prior comparable period. 

There are over 4.3 million active customers transacting with Afterpay as at the end of May, growing at an average of about 7,900 new customers per day since December 2018. 

Afterpay has also partnered with about 30,600 merchants as at the end of May, up 32 per cent on December 2018.