Listen to this article
Payment company PayPal said on Wednesday that it has received a subpoena from US federal prosecutors seeking information about its anti-money laundering programme.
The company’s shares dropped about 1.5 per cent in after-hours trading after it disclosed the subpoena in a regulatory filing. PayPal said that it was cooperating with the US Department of Justice in handing over information requested in the subpoena, and that it was unable to predict the outcome of the government’s probe.
PayPal said in a statement:
PayPal takes its compliance obligations seriously and is committed to continuously working with law enforcement to combat financial crime.
The company processed $354bn in total payment volume during 2016. In its regulatory filing, PayPal said that, as a global payments processor, it maintains a “comprehensive” compliance programme in order to keep its platform from being used to facilitate money laundering, terrorist financing and other illicit activities.