Afterpay Notice to Appoint Auditor

The Afterpay Pty Ltd Section 162(2) Notice issued by AUSTRAC on 12th June 2019 is attached. Get reading!

For those of us in the AML legal and compliance field, and those in reporting entities, we keenly await these documents to find out what really is at the nub of a matter as press releases are just that. And as a person who has previously been authorised I can fully understand the work and expense involved for both Afterpay, and the auditor, contained in these 4 pages of the Sect 162 Notice.

I will be writing a more detailed article on this Notice in due course. The key points at this stage are (paraphrased):

1. Afterpay must identify 3 or more individuals (not firms) who have an understanding of AML Act, AML/CTF Programs, and operational implementation AND have audit and reporting writing skills;
2. AUSTRAC will choose the auditor, not Afterpay;
3. The audit is from 19th January 2015 (probably the date of commencement of providing services);
4. The scope includes governance arrangements in general as well as specific sections of the Act (identification, SMRs, AML/CTF Programs etc.)
5. All to be completed within 120 days;
6. And to be paid for by Afterpay.

The Section 162 Notice can be downloaded here.

What does the Notice actually mean.

I have drawn a mind map to link the section numbers to the actual text of the Act and Rules. And yes, it is complicated.  It can be downloaded here:

Afterpay Section Mind Map. 

There are sections on:

  1. AML/CTF Program Governance;
  2. Customer Identification;
  3. Low risk services;
  4. Section 41 Suspicious Matter Reporting; and
  5. AML/CTF Programs

Paddy Oliver leads the team at AML Experts. Paddy has extensive experience as a lawyer and compliance management consultant. Importantly for you, he is an experienced Independent Reviewer and Auditor. That means AML Experts is your one-stop-shop for AML Act and AUSTRAC compliance. Paddy can be contacted here.

Recent AML Insights

Browse our blog for the latest opinion and resources for business leaders.

AfterPay: Post External Audit What Next?

Crime and Punishment, or more accurately non-compliance and potential punishment. What will happen to AfterPay post the External Auditor’s report and recommendations? AUSTRAC is on the horns of a dilemma: does it punish AfterPay for “historic non compliance” (although historical might have been a better adjective Mr External Auditor) with the AML Act; or does …

AfterPay: Post External Audit What Next? Read More »

Independent Audit Guidance from New Zealand

Guidance for AML/CFT Programme Audits was released by the New Zealand Department of Internal Affairs. Whilst not applicable in Australia it is informative with regard to Independent Reviews under AML/CTF Rule 8.6 (or 9.6) subject to the key differences between the two countries respective AML regimes. Guidance download here. Some of the key points: Para …

Independent Audit Guidance from New Zealand Read More »

PayPal Notice to Appoint Auditor

AML/CTF Program Governance Raises Its Head Again Like the AfterPay Notice to Appoint an External Auditor, the Notice issued to PayPal takes a little deciphering, especially around the AML/CTF Rule numbers. I understand why the Notices are written in this way as they are for the reporting entity (and the External Auditor): however, only stating …

PayPal Notice to Appoint Auditor Read More »

Email SubscriptionSubscribe now to receive breaking news and helpful information on AML/CTF.
Scroll to Top