The Australian Transaction Reports and Analysis Centre (Austrac) announced on Wednesday it has concluded its investigation into Afterpay, having decided it will not pursue any further regulatory action.

Austrac ordered the appointment of an external auditor into Afterpay’s Australian operations in June last year. Specifically, the regulator asked for the examination of Afterpay’s compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

“In response to the findings and recommendations identified in the external audit report, Afterpay has uplifted its AML/CTF compliance framework and financial crime function, and completed all remediation necessary to ensure compliance,” Austrac wrote on Wednesday.

“After considering the report and the response by Afterpay, Austrac has decided not to undertake further regulatory action.

Austrac said it has “reiterated the importance” for Afterpay to meet its compliance obligations in the future, and that it would continue to work with the company to ensure it understands the compliance obligations it has, as well as its role in fighting financial crime.

See also: Sweeping change: Fintech committee offers ‘quick wins’ fix to Australian ecosystem

The regulator took the opportunity to remind new and emerging financial services businesses that they may have obligations under the AML/CTF Act.  

“Startup ventures and technology-based financial businesses must consider whether they have AML/CTF obligations and if they do put in place systems and controls that identify and mitigate money laundering and terrorism financing risks,” Austrac said.

Austrac in September asked for a similar investigation of PayPal, with the examination to focus on “ongoing concerns” regarding the Australian arm’s compliance with the AML/CTF Act.

These concerns relate to PayPal Australia’s compliance with its International Funds Transfer Instruction reporting obligations.

However, Austrac in March announced an extension was granted to the auditors, taking into consideration the scope of the audit, the size, and complexity

Press release content from Business Wire. The AP news staff was not involved in its creation.


The “Global Anti-money Laundering Market by Component, Solution (KYC/CDD & Watchlist, Transaction Screening, Monitoring), Deployment Mode, End User (Banking & Financials, Gaming/Gambling Organizations), and Region – Forecast to 2025” report has been added to’s offering.

The global AML solutions market size is projected to grow from USD 2.2 billion in 2020 to USD 4.5 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 15.6% during 2020-2025.

The major growth drivers for the market include stringent government regulation and increased focus of financial institutions on digital payment related issues. However, increased complexities of AML solutions limiting ability of early detection of frauds is restraining the market.

Transaction Screening and Monitoring Solutions to grow at the highest rate during the forecast period

The transaction screening and monitoring solution is developed to meet AML and Counter Terrorism Financing (CTF) requirements, file Suspicious Activity Reports (SARs), and fulfill other reporting obligations resulting into providing organizations with an in-depth analysis of customers’ profile and risk levels and predict future activities. Additionally, the solution prepares comprehensive reports and alerts financial organizations about suspicious activities. Hence, transaction Screening and Monitoring Solution to grow at the highest rate during the forecast period

Large enterprises segment to hold a larger market size during the forecast period

Large enterprises are the early adopters of AML solutions, as they use many business applications that are susceptible to fraudulent attacks. As these enterprises are large, with different types of IT infrastructure, they face the difficult task of effectively managing the security of their applications. Unlike SMEs, large enterprises are well-equipped with technical skills, have higher investment capabilities, and are more exposed to incidents of frauds.