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- Afterpay’s share price is on the rise following the appointment of an independent auditor, currently sitting at $27.18 per share
- Financial watchdog AUSTRAC ordered an audit last month after a suspected breach of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006
- The final report is due 23 November 2019
The buy-now-pay-later group, Afterpay, has seen it share price rise almost four per cent following the appointment of an independent auditor.
Last month government agency the Australian Transaction Reports and Analysis Centre (AUSTRAC) ordered Afterpay to undergo an external audit in regards to a suspected breach of financial legislation.
In a statement AUSTRAC said it had ongoing concerns with Afterpay’s compliance to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF).
Under this piece of legislation financial services must have a protocol to verify users identity, companies are obliged to report suspicious matters and transactions above a certain threshold and the origin of electronic funds must be identified.
Afterpay has appointed Neil Jeans from AML specialist firm Intitalism to carry out the audit.
When AUSTRAC first announced the investigation, CEO Nicole Rose said Afterpay’s sudden, extensive growth raised red flags.
“The audit will help identify if Afterpay has developed and implemented the systems and controls it needs to ensure it complies with its obligations.
“These laws are in place to protect businesses, the financial system and the Australian community from criminal threats,” Nicole said.
The main points for investigation highlighted by AUSTRAC include Afterpay’s compliance with AML/CTF laws, reporting of suspicious matters and identification and verification processes.
When the order was first placed on Afterpay the company’s shares plummeted, however it has been making a steady comeback, currently sitting at $27.18 per share.
An interim audit report is due by 24 September and a final audit report by 23 November this year.
