Moolenaar, Krishnamoorthi Question PayPal Over Money Laundering Concerns

Today, Select Committee on China Chairman John Moolenaar (R-MI) and Ranking Member Raja Krishnamoorthi (D-IL) sent a letter to PayPal Holdings, Inc. to ensure the company will fully comply with anti-money laundering laws as part of its partnership with Tencent's Tenpay Global—widely known as the operator of Weixin (WeChat) Pay.

"U.S. authorities have repeatedly identified Weixin Pay as a central hub for CMLOs, including those tied to fentanyl trafficking. Federal prosecutions have documented its role in coordinating bulk-cash pickups and cross-border settlements, arranging sales of fentanyl precursor chemicals, and laundering fentanyl proceeds through the platform," the lawmakers write in the letter.

"Because Tencent and its subsidiaries are subject to Chinese law—including obligations to cooperate with state authorities—Tenpay’s operations are legally bound to Beijing," they continue.

In addition to the letter, Moolenaar and Krishnamoorthi have requested documents relating to PayPal and Tencent's integrations and a briefing to ensure compliance.

Combatting money laundering and illicit finance has been a priority for the committee. Earlier this week, the Select Committee held a roundtable examining Hong Kong's Role as a Safe Haven for PRC Money Laundering and Sanctions Evasion. 

Read the letter here.