5.02.2021. Banks fear Afterpay increases money laundering risks

Company News

Banks fear that ”buy now, pay later” operators such as Afterpay , which operate outside traditional banking rules, have increased the risk they will be ensnared in more anti-money laundering dramas.
Banks say they cannot see where money is being spent because the new players are standing in between banks and transactions.
The Australian Banking Association wants Treasury to close “gaps” in regulations to reduce growing payments risks.
The Financial Conduct Authority in Britain plans to bring companies Afterpay, Zip and Laybuy into its supervisory net – including requiring providers to conduct affordability checks before lending to customers.
The new British regulations will go further than Australia’s, where regulators have adopted a light-touch approach to the fast-growing sector, focused mostly on self-regulation.