The Australian Transaction Reports and Analysis Centre (AUSTRAC) has cancelled an enforceable undertaking (EU) with PayPal Australia Pty Ltd after PayPal completed a two-year remediation plan to strengthen its systems and controls for international funds transfer instructions (IFTIs). AUSTRAC ordered an external audit of PayPal’s anti-money laundering and counter-terrorism financing (AML/CTF) program in 2020 after identifying concerns that PayPal’s systems, controls and governance were not appropriate for the size and complexity of its business and the money laundering risks it faced. AUSTRAC accepted the EU in March 2023 to address compliance issues in IFTI reporting that deprived partners of timely financial intelligence. In May 2025, PayPal advised it had completed the EU remediation work and undertaken additional control enhancements recommended by an external audit, with both the external auditor and AUSTRAC agreeing the improvements met EU requirements. AUSTRAC noted that payment platforms were identified for increased regulatory activity in its 2024 Regulatory Priorities due to rapid sector growth, intelligence concerns, money laundering risks and varied compliance levels, and reiterated that AML/CTF Act reporting entities, including those to be brought into the regime under upcoming reforms, must understand and mitigate their money laundering and terrorism financing risks.
Australian Transaction Reports and Analysis Centre (AUSTRAC) 2025-07-22
Australian Transaction Reports and Analysis Centre cancels PayPal Australia enforceable undertaking after remediation of international funds transfer reporting controls
AUSTRAC has cancelled an enforceable undertaking with PayPal Australia after completing a two-year remediation plan to improve its international funds transfer systems. This followed a 2020 audit revealing inadequate anti-money laundering and counter-terrorism financing controls. AUSTRAC highlighted increased regulatory scrutiny on payment platforms due to sector growth and compliance concerns.