Payday News has published about payments processing in shops selling illegal tobacco:
Illegal tobacco stores are popping up around the country in what is fast becoming multi-billion dollar market for organised crime which appears to be serviced by multiple banks and fintechs for payments.
What are the legal obligations on acquirers, PSPs and card schemes?
An investigation by Payday News last week revealed that a large number of illegal tobacco outlets are using card payments terminals provided by banks and fintechs to sell their illegal products which, according to experts, could have serious legal implications. Some of these shops also have ATMs inside their premises for customers to access cash.
Financial Crime Compliance expert Luke Raven told PAYDAY NEWS illegal tobacco was fraught for payment processors, who often mistakenly think they aren’t captured by Anti-Money Laundering (AML) or Counter-Terrorism Financing (CTF) laws, or misunderstand the extent of their obligations.
“Many payment processing firms think that they aren’t regulated under the AML/CTF regime in Australia, and candidly, they’re wrong,” Raven said.
Retailers of tobacco products operating legally will appreciate this latest coverage.
The recent story on the illegal tobacco by Australian Broadcasting Corporation (ABC)‘s Dan Oakes exposed the extent of illegal tobacco industry and how ubiquitous the trade has become across Australia.