Do US authorities monitor PayPal transactions for illegal activity?

Asked Feb 8, 2020· 1 answer ·Americas, Developed Markets, North America, United States
Faisal KhanAnswered Feb 8, 2020

Directly? no. Indirectly? Yes. PayPal like all other businesses in the financial services sector is highly regulated on a state level in the United States with federal reporting responsibilities on transactions meeting certain criteria.

It is up to each business to set up a compliance and monitoring program, that is geared to highlight a multitude of areas such as suspicious transaction reporting, suspicious activity reporting, cash transaction reporting, money laundering flags, list flagging, and other flags that may be as a result of DD, EDD or correlation of data. Cross-examination and independent audits may also come into play here.

Sooner or later, if the account is active and illegitimate in such a way such that its detection can be done or it triggers a threshold after which further verification (enhanced due diligence) is required on the business, then this will happen at some point in time.

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