[Clips] Austrac runs eye over net payments

R. A. Hettinga rah at shipwright.com
Tue Nov 8 09:32:06 PST 2005


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 Date: Tue, 8 Nov 2005 12:30:51 -0500
 To: Philodox Clips List <clips at philodox.com>
 From: "R. A. Hettinga" <rah at shipwright.com>
 Subject: [Clips] Austrac runs eye over net payments
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 <http://australianit.news.com.au/common/print/0,7208,17167384%5E15319%5E%5Enbv%5E15306,00.html>

 Australian IT

 Austrac runs eye over net payments
 Simon Hayes
 NOVEMBER 08, 2005
 PAYMENTS watchdog Austrac will continue to consider whether tighter
 regulation is needed for the growing internet payment systems sector in
 light of concerns that criminals could use the gateways to launder money.
 Austrac director Neil Jensen told Senate Estimates that Austrac would
 recommend changes to the Financial Transactions Reporting Act if it felt
 payment systems were being used to evade cash reporting requirements.

 The Attorney-General's Department is considering broader changes to bring
 the Act up to the requirements of the Financial Action Task Force.

 "We will look at payment systems to see what they are and if they are
 caught by the existing legislation," Mr Jensen said.

 "If they're not, is this an issue and do we need to refer it to the
 Attorney-General's Department for a policy decision?"

 Mr Jensen said Austrac examined each payment system separately to see if it
 was covered by the reporting requirements in the existing legislation.

 PayPal, the payment system owned by internet auction giant eBay, reports
 suspicious transactions to Austrac, but it is not required to report all
 transactions of $10,000 or more because it does not accept cash and does
 not operate accounts.

 "We only monitor the transactions they provide to us, and PayPal is a cash
 dealer under the legislation," Mr Jensen said.

 "Because of the way PayPal operates it generally reports only the
 suspicious transactions."

 Mr Jensen said Austrac was monitoring the internet payment sector to see if
 additional legislation was needed.

 "We have done monitoring of payment systems that may be used across the
 internet and we will be doing more work on that," he said.

 "It is part of an ongoing strategic approach to looking at alternative
 systems that may be eluding, or are not caught by, the current legislation.

 "If we found something that we believed should be caught by the
 legislation, we would refer that to the Attorney-General's Department."

 PayPal managing director Andrew Pipolo said the company had taken
 additional steps to prevent fraud.

 "PayPal imposes an internal limit of $US10,000 ($13,600) on transactions in
 the PayPal system," he said.

 PayPal had a 0.24 per cent fraud rate, Mr Pipolo said.

 "Importantly, PayPal is a safe way to pay online and has very few losses
 because of fraud."

 Earlier this year Austrac warned that criminals could be operating offshore
 bank accounts and using credit cards to pay for goods and services in
 Australia, escaping reporting requirements.


 --
 -----------------
 R. A. Hettinga <mailto: rah at ibuc.com>
 The Internet Bearer Underwriting Corporation <http://www.ibuc.com/>
 44 Farquhar Street, Boston, MA 02131 USA
 "... however it may deserve respect for its usefulness and antiquity,
 [predicting the end of the world] has not been found agreeable to
 experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'
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-- 
-----------------
R. A. Hettinga <mailto: rah at ibuc.com>
The Internet Bearer Underwriting Corporation <http://www.ibuc.com/>
44 Farquhar Street, Boston, MA 02131 USA
"... however it may deserve respect for its usefulness and antiquity,
[predicting the end of the world] has not been found agreeable to
experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'





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