PayPal Australia is undertaking “extensive” remedial work on its reporting of international funds transfers, in response to AUSTRAC concerns about the company’s systems, controls and governance in this area. PayPal has acknowledged AUSTRAC’s concerns and has given an enforceable undertaking to ensure compliance with AML/CTF law. Under Australia’s anti-money laundering and counter-terrorism financing rules, an instruction accepted in Australia for money or property to be made available in another country or an instruction that is accepted in another country for money or property to be made available in Australia is known as an international funds transfer instruction – IFTI – and must be reported to AUSTRAC. Under the enforceable undertaking PayPal will provide AUSTRAC with independent assurance of the suitability and sustainability of this work. “Business as usual reporting will see an increase in the volume of IFTI reporting and the development of new systems,” AUSTRAC said in its statement of concerns. AUSTRAC has stepped up its regulatory oversight of financial institutions over the past year, accepting enforceable undertakings from Cash Converters, NAB and ING Bank Australia.  The range of concerns leading to these undertakings includes AML/CTF programs not properly implemented (Cash Converters) non-compliance with AML/CTF rules (NAB) and poor compliance systems (ING).