Afterpay down 5.5pc at two-month low

Shares in Afterpay Touch are down from 1.28 USD today, or 5.5%, to 20.30 USD., the lowest price for two months. This means that the institutional shareholders who took part in last week's capital raise are in the red after paying $ 23 a share on June 11. Afterpay was trading at $ 25.64 on June 6th.

What weighs on the share price is a bit of profit for retail shareholders (with CommSec, the second most active Afterpay broker today) and revelations about regulatory oversight. Or as Financial Review The back window column says it today:

"Do not forget that Afterpay has only introduced – without enthusiasm – the third-party verification of client identification in July 2018, after governance firm Ownership Matters has demonstrated that miners could use the platform to buy alcohol.The AUSTRAC survey dates back to January 2015. A company that could not identify its customers, ipso facto, does not can not guarantee their compliance with the law. "

Rear window adds that a year ago, consulting firm in a vote Property issues explained to customers that he was able to create an account for a "Miguel Luacha" using a $ 100 prepaid VISA card (made out to the "Gift Card Holder"), a prepaid SIM card and a one-time e-mail address to purchase goods worth $ 260 in Melbourne retailer via Afterpay.

"The attorney company was only testing the system, but it showed that a corrupt merchant compatible with Afterpay could set up multiple accounts, each cleaning money at up to $ 1,500 each, then wait for 21 days, rinse and repeat themselves." And think about AUSTRAC is the soft and cuddling cousin of Washington's bloody FinCEN, the expansion of Afterpay in the US continuing at a breakneck pace. "Gulp."