I have tried to objectively parse through the recent statements on Austract. These are usually very carefully worded from my experience.
Today APT omitted any mention of not having identified any (money laundering) problems to date, and stated that they are continuing to invest in further AML/CTF compliance enhancements - which is different to the previous release on the matter IMO. It leaves open the possibility that now something has now been identified, and that they definitely have to spend more on AML/CTF costs, which would probably impact earnings. All IMO!
I've copied two excerpts below:
Todays:
"
Afterpay has undertaken various measures to strengthen Afterpay’s AML/CTF framework including in
focus areas identified in the Notice and we are continuing to invest in further AML/CTF compliance
enhancements. We do not expect any impact to arise on the way customers and merchants currently
experience the Afterpay service.
"
On the 6th June release, APT stated the following three points.
"
Anti-Money Laundering / Counter-Terrorism, Financing (AML/CTF)
● In July 2018, Afterpay amended its AML/CTF compliance framework to incorporate obligations in
relation to the services we provide our customers, including external identity verification and other
processes for all Afterpay customers.
● Although Afterpay has not identified any money laundering or terrorism financing activity via our
systems to date, Afterpay is currently in dialogue with AUSTRAC regarding issues that AUSTRAC has
raised regarding our AML/CTF compliance, the outcome of which is yet to be determined.
● As a scheduled part of our existing program, we are in the process of appointing a leading
professional services firm to conduct an independent review of the design and operation of our
AML/CTF framework to see if any further improvements or actions can or should be made.
"
APT Price at posting:
$23.17 Sentiment: Sell Disclosure: Held
