In morning trade the Afterpay Touch Group Ltd (ASX: APT) share price has pushed higher following the release of an update in relation to Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) matters.
At the time of writing the payments company's shares have climbed 5% to $33.30.
What was in the update?
According to the release, the confidential interim report of external auditor Mr Neil Jeans has now been provided to AUSTRAC. It does not provide any recommendations, which will be left to the final report.
Furthermore, the external auditor has advised that work is now underway to complete the assessment of, and test the implementation and compliance with, the various AML/CTF Programs in place during and after the notice period.
Management has also reiterated that it has not identified any money laundering or terrorism financing activity via its systems to date.
It advised: "Afterpay's systems include several features that help to control our money laundering and terrorism financing risk, including the implementation of strict spending limits. Afterpay is used by our customers for discrete, small value (around $150 average), non-cash transactions and does not allow for international funds transfers."
"Afterpay recognises the important work undertaken by AUSTRAC. The Company reiterates that it welcomes the opportunity to continue to work cooperatively with AUSTRAC and will approach this formal process as an opportunity to ensure that our AML/CTF compliance is robust," it added.
The company intends to provide a further update once the final report is delivered to AUSTRAC.
What else has happened?
This wasn't the only bit of news relating to Afterpay today. As I mentioned here earlier, analysts at Goldman Sachs have upgraded its shares to a buy rating and placed them on the broker's coveted conviction list.
Goldman also lifted the price target on its shares to $42.90. Based on its last close price, this implies potential upside of 35% over the next 12 months.
Its analysts made the move after upgrading their frequency of use assumptions for the US and UK following a review of the company's disclosures in its FY 2019 result. This is expected to drive stronger than expected operating leverage over the coming years.
