The Afterpay Touch Group Ltd (ASX: APT) share price was the top ASX200 performer today after announcing an update regarding its AUSTRAC audit report.
Afterpay has given AUSTRAC the final audit report after the external independent auditor finished his review.
The audit report included a reference to matters of historic non-compliance by Afterpay and made recommendations about Afterpay’s ongoing AML/CTF compliance. The auditor said that the non-compliance was due to incorrect legal advice.
However, the auditor did confirm that Afterpay’s current program is aligned with the AML/CTF Act and that Afterpay is a low risk business in regards to its vulnerability to be used for money laundering or terrorist financing.
The company also reaffirmed that it has not identified any money laundering or terrorism financing activity on its systems to date.
It’s now in AUSTRAC’s hands about whether any further action will be taken. Afterpay will continue to cooperate with AUSTRAC the audit report and its general AML/CTF compliance.
Whilst it wasn’t a complete victory for Afterpay, the audit report doesn’t sound as bad as it could have been.
Indeed, the auditor wrote “Afterpay has a strong compliance culture, supported at the highest levels…As a result of the increased resource allocation, Afterpay’s transaction monitoring system is now effective, efficient and intelligent.”
As Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) have experienced, AUSTRAC is making its presence felt in the financial system.
Any bit of good news from Afterpay is met by a sharp increase in price, so it’s not surprising to see today’s strong positive reaction. Afterpay isn’t going to make it into my portfolio, but I can see why some investors want to put it into their own portfolio after today.
The post The Afterpay share price jumped 7% today appeared first on Motley Fool Australia.
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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019