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PayPal Faces U.S. Investigations over Money Laundering and Sanctions

Washington_DC_MallPayPal said it has come under U.S. Department of Justice Investigation for potentially violating anti-money laundering regulations. The payment processor also said that it had received subpoenas from the U.S. Treasury Department over alleged sanctions violations.

“We are cooperating [and] providing information,” PayPal said without providing more detail. “We are unable to predict the outcome of the government’s investigation.”

PayPal in 2015 had to pay a $7.7 million penalty to the Treasury Department’s Office of Foreign Assets Control to settle charges that it processed nearly 500 illegal transactions to Cuba, Iran and Sudan.

The new investigations come amid a heady time for PayPal. It recently reported a 17 percent year-over-year revenue increase for 2016, with its mobile payment processing increasing 53 percent in the fourth quarter compared with the same period of 2015, reaching $31 billion. The company also recently released its first payments bot that enables users to move and manage their money via messaging platform Slack. And earlier this month, PayPal, in a bid to increase its foothold among customers who prefer cash, said it would spend approximately $233 million to buy Vancouver-based bill payment firm TIO Networks.

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