Financial crime watchdog, AUSTRAC has ordered Afterpay (ASX:APT) to appoint an external auditor to investigate it's compliance with money laundering and terrorism financing laws.
The buy now pay later company says its business model has several features that help to control money laundering and terrorism financing risk, including the implementation of strict spending limits (up to a maximum of $1,500 per transaction).
A final version of the audit report is required to be provided to AUSTRAC within 120 days of the external auditor’s appointment.
The news comes on the back of the company's successful $317 million capital raising earlier this week which saw its shares jump 10 per cent on Wednesday.
Shares in Afterpay (ASX:APT) are trading 9.17 per cent lower to $23.29.