PayPal received subpoenas by DOJ over money laundering program

PayPal revealed on Wednesday that it is being investigated for violations of anti-money laundering regulations and U.S. sanctions.

The California-based online payment processor said in a securities filing that it had received a subpoena from the U.S. Department of Justice seeking information related to its “historical anti-money laundering program” as well as new subpoenas related to potential sanctions violations from the U.S. Department of the Treasury.

"We have received subpoenas from the U.S. Department of Justice (DOJ) seeking the production of certain information related to our historical anti-money laundering program. We are cooperating with the DOJ in providing information in response to the subpoenas. We are unable to predict the outcome of the government's investigation."

PayPal processed $354 billion in transactions in 2016, with about half of the volume overseas. Since it handles transactions across borders, it has to comply with laws targeting money laundering.

The company said it is cooperating with the investigation and that it is unable to predict the government's response.