The key financial regulator, AUSTRAC will not be taking regulatory action against the buy now pay later pioneer, Afterpay over its money laundering disclosures.
Afterpay revealed the news in a statement to the ASX on Wednesday.
The company said that AUSTRAC took the decision after considering a final audit report into the firm’s compliance with anti-money laundering and counter-terrorism laws.
The news removed a potential bad news overhang from the share price.
AUSTRAC noted Afterpay had improved its compliance framework and financial crime function and satisfactorily completed all required remediation activity.
AUSTRAC is fresh from taking action and winning huge judgments against the CBA and Westpac in the past couple of years over money-laundering breaches by those two giants.
“We are pleased to have received AUSTRAC’s decision following the external audit as it provides the Company and its stakeholders with certainty and acknowledges the work the company has undertaken to strengthen its (AML/CTF) compliance,” Afterpay chair Elana Rubin told investors.
Afterpay shares closed up 2.1% at $96.47 after it hit a record high of $98.68 in trading on Wednesday (its second all-time in trading high in as many days).
