Money: Afterpay faces audit after AUSTRAC order - PressFrom - Australia
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MoneyAfterpay faces audit after AUSTRAC order

10:51  14 june  2019
10:51  14 june  2019 Source:   msn.com

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AUSTRAC said it ordered the audit following "a period of ongoing engagement with Afterpay where AUSTRAC has identified concerns with its compliance". In disclosing the audit risk last Thursday, Afterpay said it was in the process of commissioning an independent review of its AML/CTF framework.

AUSTRAC has ordered an external auditor to probe Afterpay 's compliance with money laundering and terrorism financing laws. AUSTRAC said on Thursday that the scope of the audit will include the buy-now, pay-later company's identification and verification of customers as well as its suspicious

Afterpay faces audit after AUSTRAC order© AAP Images Afterpay shares have fallen 12% after Australia's financial intelligence agency ordered an auditor to probe its compliance with money-laundering rules.

Afterpay Touch shares have closed down 12 per cent as the high-flying buy now, pay later company faces questions about its compliance with Australia's anti-money laundering and terrorism financing law.

Federal financial intelligence agency AUSTRAC said on Thursday it had ordered Afterpay to hire an external auditor to probe Afterpay's compliance with the 2006 law, and threatened unspecified action if the firm wasn't taking it seriously.

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Australian financial crime watchdog calls for audit to investigate buy-now pay-later company’s compliance with terrorism-financing laws.

AUSTRAC says it has ordered an external review of the company to ensure it was complying with "The audit will help identify if Afterpay has developed and implemented the systems and controls it The notice served to Afterpay by AUSTRAC , which was released to the ASX, states the regulator has

Afterpay last week disclosed that the audit was a possibility and said that further action "could include civil penalty proceedings, fines, remedial directions, and enforceable undertakings".

Afterpay shares closed down $3.09, or 12.1 per cent, to a two-week low of $22.55.

AUSTRAC's concerns specifically revolve around the identification and verification of customers, its suspicious matter reporting obligations and its governance and oversight of decisions related to its anti-money laundering and counter-terrorism financing (AML/CTF) framework.

"The audit will help identify if Afterpay has developed and implemented the systems and controls it needs to ensure it complies with its obligations," AUSTRAC chief executive Nicole Rose said.

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On Thursday the Australian Transaction Reports and Analysis Centre ( AUSTRAC ) said it had ordered Afterpay to appoint an external auditor after a "period of ongoing engagement" where AUSTRAC identified concerns with Afterpay 's compliance with anti-money laundering laws.

AUSTRAC chief executive Nicole Rose has ordered an audit of Afterpay 's compliance with anti-money laundering and counter-terrorism financing laws. Credit:Justin McManus. She added that AUSTRAC “will not hesitate to take action where an organisation is failing to appropriately protect

Ms Rose said AUSTRAC would work with Afterpay to mature and strengthen its compliance processes and staff training.

"But we will not hesitate to take action where an organisation is failing to appropriately protect itself and Australia's financial system from criminal activity."

The audit will be at Afterpay's expense, with a preliminary report due to AUSTRAC within 60 days and a final version due within 120 days.

"We welcome the opportunity to continue to work closely and constructively with AUSTRAC and we will approach this formal process as an opportunity to ensure that our AML/CTF compliance is robust," Afterpay said.

"We are committed to remaining focused on becoming better at what we do."

Afterpay noted that customers use its service to budget for small value transactions, with an average value of $148 and a maximum value of $1,500.

It said it recognised that the buy now, pay later sector is a new sector for regulators and wanted to work constructively with AUSTRAC to develop compliance policies specific to its business.

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“The audit will help identify if Afterpay has developed and implemented the systems and controls it needs to ensure it complies with its obligations,” AUSTRAC Chief Executive Officer Nicole Rose said in a statement. The audit would be used to determine the extent of any compliance issues and whether

Afterpay said the trio had confirmed their intention to remain investors in the company and would not sell any further shares for at least four months after the placement. Afterpay faces audit after AUSTRAC order . Village Roadshow names Clark Kirby new CEO. Aussie dented following jobs data.

AUSTRAC said it ordered the audit following "a period of ongoing engagement with Afterpay where AUSTRAC has identified concerns with its compliance".

In disclosing the audit risk last Thursday, Afterpay said it was in the process of commissioning an independent review of its AML/CTF framework.

Afterpay has been one of the hottest stocks on the ASX200, having more than doubled since the start of the year.

But it has yet to turn a profit as it pursues growth, gaining 7,900 new customers a day so far this year.

Burdensome identity-verification requirements that makes the service more cumbersome to use would likely hurt its prospects.

Afterpay said it didn't expect any impact to arise "on the way customers and merchants currently experience the Afterpay service".

Afterpay rivals Zip Co, Splitit and FlexiGroup also closed down, between 4.8 and 5.3 per cent.

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