Letter to PayPal Seeking Assurance of AML Compliance in PayPal–Weixin Pay Integrations

The Select Committee on the Chinese Communist Party has written to PayPal seeking assurances that its new integrations with Tencent’s Tenpay Global—the operator of Weixin (WeChat) Pay—comply fully with U.S. anti–money laundering (AML) requirements. These integrations allow PayPal users in the U.S., Canada, and Europe to both remit funds directly into Weixin Pay wallets and linked bank accounts in the People’s Republic of China (PRC), and to make purchases inside the PRC using Weixin Pay QR codes.

The Committee is concerned that these integrations could enable Chinese Money Laundering Organizations (CMLOs)—already documented as using Weixin Pay to facilitate fentanyl trafficking and other illicit activity—to move illicit funds directly through PayPal–Weixin Pay channels. Such a development would eliminate friction between criminal coordination and execution, potentially bypassing Know Your Customer (KYC) and AML safeguards required under the Bank Secrecy Act (BSA).

The Committee emphasizes that PayPal, as a registered Money Services Business, is directly responsible for maintaining a robust, risk-based AML program—including customer identification, ongoing monitoring, and suspicious activity reporting—regardless of reliance on foreign partners. This responsibility is heightened given that Tencent Holdings, Tenpay’s ultimate parent company, has been designated by the U.S. Government as a “Chinese military company” and is legally bound to cooperate with the PRC regime.

While acknowledging PayPal’s past compliance contributions, the Committee insists on enhanced due diligence, greater transparency, and tailored controls to address the significant risks posed by Weixin Pay integrations. To evaluate PayPal’s compliance posture, the Committee has requested a staff briefing and production of documents—including agreements with Tenpay, risk assessments, compliance procedures, suspicious activity reports, and recent audits—by October 3, 2025.

This inquiry is part of the Committee’s broader mandate under House Resolution 5 to investigate and recommend policy responses to the economic, technological, security, and ideological threats posed by the CCP to the United States and its allies.

Read the full letter here