PayPal Australia has succeeded in submitting an Enforceable Undertaking (EU) to the country’s financial watchdog AUSTRAC.

This comes as the watchdog found cause for concern over the online payments firm’s controls in place for reporting its international funds transfer instructions (IFTI).

AUSTRAC has accepted PayPal’s EU in order to ensure that the business is in compliance with local anti-money laundering (AML) and counter-terrorism financing (CTF) laws. 

It has been stated that PayPal has already put in significant effort to satisfy all regulations and strengthen its AML monitoring capabilities and remains committed to continue building trust with AUSTRAC by providing it with independent audits of its operations in Australia. 

AUSTRAC CEO Nicole Rose commented: “Every business with obligations under the AML/CTF Act must have robust systems in place to ensure they meet their AML/CTF requirements and play their part in protecting Australia’s financial system from criminal exploitation.

“PayPal has cooperated with AUSTRAC throughout the course of our regulatory enquiries demonstrating its commitment to maturing its AML/CTF compliance arrangements.

“AUSTRAC will continue to work with PayPal to ensure that the changes and enhancements made to PayPal’s AML/CTF program are appropriate and sustainable and that the complex and technical work undertaken by PayPal has met its objectives in the real time operational environment.

“AUSTRAC will continue to utilise its supervisory and enforcement powers, to achieve the best outcomes for industry and the Australian people, ensuring frontline businesses do their part to protect Australia’s financial system from criminal exploitation.”