An interim report into Afterpay’s compliance with anti-money laundering and terrorism financing laws has been handed to the financial intelligence agency, but no recommendations have been made as yet.
The high-flying buy now, pay later service was forced by AUSTRAC to hire an external auditor to probe its compliance with the 2006 law, with the agency threatening unspecified action if the ASX-listed firm wasn’t taking it seriously.
Afterpay said on Wednesday external auditor Neil Jeans had handed the confidential interim report to AUSTRAC, with recommendations to be left to the final report.
The company also reiterated that no money laundering or terrorism financing activity had been identified in its systems to date.
AUSTRAC has ordered a final report be submitted by November 23.
Shares in Afterpay surged more than 13 per cent to a fresh all-time high of $36.00 by 1116 AEST in tandem with a positive trading update from broker Goldman Sachs.
AUSTRAC on Tuesday also ordered a similar audit of PayPal’s Australian unit, flagging concerns over reporting obligations.
PayPal said it had self-reported the issue following an internal review.