DOJ Subpoenas PayPal For Money Laundering Investigation

PayPal Holdings Inc. announced on Wednesday (Feb. 8) that its anti-money laundering program has received subpoenas for information from the U.S. Department of Justice, causing the company’s shares to dip as much as 2.8 percent.

According to Law360, the online payment processor received a subpoena from the DOJ seeking information related to its “historical anti-money laundering program,” as well as new subpoenas related to potential sanctions violations from the U.S. Department of the Treasury.

Bloomberg reported that PayPal processed $354 billion in transactions in 2016, with about half of business taking place overseas. Since it handles transactions across borders, PayPal has to comply with laws targeting money laundering. The company points out that its users — and not PayPal itself — are the subject of the DOJ’s subpoenas.

“We are cooperating with the DOJ in providing information in response to the subpoenas,” the company said. “We are unable to predict the outcome of the government’s investigation.”

This isn’t the first time the DOJ has used information from PayPal during an investigation; in 2015, it convicted organizers of a software piracy ring who used the site to accept payments.

“PayPal takes its compliance obligations seriously and is committed to continuously working with law enforcement to combat financial crime,” PayPal spokeswoman Ellen Hayes said.


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