And now back up 20%!!!
Re the original comment, the insider sales I presume relate to the capital raising, related to the sale of some of the founders and CEO’s stake, which were well publicised to the market. The founders still have a considerable stake in the business.
Also as per more recent releases, the market is happy that the founders are looking to make the board more independent with one stepping down from chairman to CEO, while the other will move to CRO. They will look to hire 2 new independent directors, who would then make up a majority. They have also recently hired Frerk-Malte Feller as COO, who comes from Facebook and has significant experience in growing financial online platforms.
As to the AUSTRAC audit re money-laundering and counter terrorism requirements compliance, this is not an ‘investigation’ into suspected dodginess. Here are the comments directly from the mouth of the CEO of Austrac:
AUSTRAC Chief Executive Officer, Nicole Rose PSM said the buy now, pay later sector has experienced rapid growth in recent years and this appointment reminds new financial services businesses that they have obligations under the AML/CTF Act and they must take these seriously.
“The audit will help identify if Afterpay has developed and implemented the systems and controls it needs to ensure it complies with its obligations. These laws are in place to protect businesses, the financial system and the Australian community from criminal threats,” Ms Rose said.
AUSTRAC is committed to educating emerging financial services businesses to assist them to meet their obligations and fight financial crime.
The audit will be used to determine the extent of any compliance issues and whether further regulatory action concerning Afterpay is required.
“AUSTRAC will continue to work with Afterpay to assist the company to mature and strengthen its compliance processes, staff training and suspicious matter reporting,” Ms Rose said.
“But we will not hesitate to take action where an organisation is failing to appropriately protect itself and Australia’s financial system from criminal activity.”
The language is definitely aimed around shaping the sector for compliance, not coming down with a heavy fist. In addition, the comments re potential regulatory requirements have been a constant discussion around the BNPL sector and so far they have passed numerous hurdles avoiding more onerous requirements for credit checks.