The Afterpay Ltd (ASX: APT) share price is up 2.5% at 96.90 this afternoon after hitting a record high of $98.68 in opening trade today.
Afterpay's share price has defied naysayers and is now 5% up from its previous all-time highs, set on 25 August. Year-to-date, the share price is up 218%.
For comparison, the S&P/ASX 200 Index (ASX: XJO) is down 8% for the year.
As if Afterpay shareholders needed anything else to celebrate this year, AUSTRAC just delivered it.
What does Afterpay do?
Afterpay is a leader in the buy now, pay later (BNPL) market. Afterpay's payment platform allows people to buy and receive goods and spread the cost of their purchase out over equal payments, without any interest fees.
Founded in 2015, Afterpay shares first began trading on the ASX in June 2017. Today the company operates in Australia, the United States and the United Kingdom, with current expansion plans into the wider European market.
What was AUSTRAC's decision on Afterpay?
In June 2019, financial crimes watchdog AUSTRAC ordered Afterpay to appoint an external auditor into allegations the company had broken anti-money laundering legislation. Last November the report indicated that Afterpay had indeed breached some laws, but that it was due to poor legal advice rather than its inherent business model.
In an announcement to the ASX this morning, Afterpay confirmed that it had received final notification from AUSTRAC, and that the agency would not be taking any further regulatory action.
AUSTRAC noted that the BNPL giant had uplifted its AML/CTF compliance framework and financial crime function, and completed its mandated remediation activities.
Commenting on the decision, Afterpay chair Elana Rubin said:
We are pleased to have received AUSTRAC's decision following the external audit as it provides the company and its stakeholders with certainty and acknowledges the work the company has undertaken to strengthen its AML/CTF compliance.
The external audit provided Afterpay with the opportunity to better understand our obligations and to improve the way we manage our AML/CTF risks. We will use these learnings and our ongoing engagement with AUSTRAC to continue enhancing our AML/CTF framework as the business continues to grow.
With the Afterpay share price now up a mind-boggling 994% since the 23 March lows, shareholders will welcome the news of its strengthened compliance regimes.
