Afterpay investors face a nightmare scenario with global payments giant Visa entering the installment payments market which sent the buy now,pay later stock reeling just before the ASX closed on Friday.
No more excuses. Afterpay is in the big league now.
The threat of an audit by AUSTRAC no longer holds any concerns for Afterpay investors.
Afterpay rival Zip Co lost its attempt to strip Australia's largest non-bank lender,Firstmac,of the Zip trade mark six months before the Brisbane lender commenced legal action against it.
Nobody at the time paid much attention to a paragraph towards the end of the 24-page investor presentation.
The securities regulator is continuing to monitor Afterpay and even loyal investors said the timing of the $300 million raising and the action by AUSTRAC'stinks'.
Australia's financial crime watchdog,AUSTRAC,said it has been talking with Afterpay about compliance with the anti-money laundering and counter-terrorism financing laws for almost a year
Afterpay’s board,including the founders who sold more than $100 million worth of shares this week,will come under the scrutiny of Australia's financial crime watchdog.
AUSTRAC says it has ordered an external review of the company to ensure it was complying with anti-money laundering and counter terrorism financing laws.
"We view this as a Visa/ Mastercard situation,"Sezzle chief executive Charlie Youakim said."We don't think it will be a winner takes all,"
Regulatory hiccups,and a $100 million share sale by Afterpay's founders,is not expected to be a concern as the buy now,pay later provider asks investors for $300 million to fund its expansion into the United States.