Afterpay's compliance with anti-money laundering laws under AUSTRAC scrutiny
5 years, 9 months ago

Afterpay's compliance with anti-money laundering laws under AUSTRAC scrutiny

ABC  

The financial intelligence regulator has ordered Afterpay to appoint an external auditor to examine its compliance with anti-money laundering and counterterrorism financing laws. Key points: AUSTRAC says it has concerns about Afterpay's compliance with anti-money laundering laws The audit will cover the period from January 2015 to now Afterpay confirms its maximum limit is $1,500 per transaction In particular, Afterpay will be assessed on how it identifies and verifies customers and its reporting of suspicious transactions. The buy now, pay later sector has experienced rapid growth in the past few years and the Australian Transaction Reports and Analysis Centre said it had "identified concerns with its compliance". Buy now, pay later scrutiny "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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History of this topic

Financial counsellors warn Afterpay Plus will trap more vulnerable borrowers in debt
1 year, 5 months ago

Financial counsellors warn Afterpay Plus will trap more vulnerable borrowers in debt

ABC  

Financial counsellors warn Afterpay's new $10 per month subscription scheme will trap more vulnerable spenders in debt. Key points: Afterpay Plus is a monthly subscription which allows shoppers to borrow money, even in shops that don't accept Afterpay Financial counsellors say it will make unregulated credit even easier to access An Afterpay spokesperson says the company maintains rigorous consumer protections …

How Afterpay went from zero to $39 billion thanks to loyal millennials, powerful lobbyists and the COVID-19 pandemic
3 years, 7 months ago

How Afterpay went from zero to $39 billion thanks to loyal millennials, powerful lobbyists and the COVID-19 pandemic

ABC  

For most global businesses, the COVID-19 pandemic has been nothing short of a train wreck. The $39 billion takeover of buy now, pay later darling Afterpay by US payments giant Square may have seemed unfathomable more than a year ago, when the company's share price tanked at around $8.90. "It turned out, COVID-19 meant e-commerce was about to get a …

Senate grills Afterpay, Zip after accusations they are leading young people into debt
6 years, 2 months ago

Senate grills Afterpay, Zip after accusations they are leading young people into debt

ABC  

Rapidly growing 'buy now, pay later' services such as Afterpay and Zip are being accused of pushing one-in-six young people into debts they cannot afford. "Of my Centrelink payments, I would be using about 50 per cent to pay off my Afterpay bills," she said. Afterpay v Zip in buy now, pay later wars However, Zip has a potential advantage …

Afterpay shares plunge on 'buy now, pay later' crackdown fears ahead of Senate inquiry
6 years, 5 months ago

Afterpay shares plunge on 'buy now, pay later' crackdown fears ahead of Senate inquiry

ABC  

Afterpay shares have plunged following news a Senate inquiry will examine "debt vultures", payday lenders, lease-to-buy schemes and 'buy now, pay later' providers not covered by the banking royal commission. "Financial counsellors are telling us that their clients are coming in with increased debts, as a result of predatory debt-management firms and other unlicensed financial services providers," Senator McAllister said. …

Afterpay's late fees make up 24pc of its income; ASIC recommends buy now, pay later law reform
6 years, 7 months ago

Afterpay's late fees make up 24pc of its income; ASIC recommends buy now, pay later law reform

ABC  

The digital payment app Afterpay, popular amongst millennials, is facing criticisms that it causes "financial stress" for vulnerable consumers. "Our financial counsellors report that we are receiving increasing numbers of calls from people with buy-now-pay-later debts, including Afterpay," said Katherine Temple, the Consumer Action Law Centre's senior policy officer. ASIC's regulatory loophole Also released on Thursday was a report by …

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