The Afterpay Touch Group Limited [ASX:APT] share price is up 8.53% today, trading at $33.09.
After a slump between mid-October and early November, the Afterpay share price notched up multiple winning sessions in the lead up to today’s announcement:
The independent audit of APT’s AML/CTF compliance found that Afterpay had breached the law due to incorrect legal advice. But based on today’s large spike, it appears as if investors may be thinking the fintech giant is in the clear going forward. Below we pull out the key quotes and takeaways from today’s announcement.
Find out why we think Afterpay is one of the best fintechs and get the names of two more exciting fintechs here.
Afterpay share price spikes as high as $34.03 on announcement
Independent auditor Neil Jeans’ final report was released just before the markets opened, and the Afterpay share price went as high as $34.03 in the first hour and a half of trading.
With an AFR headline reading ‘Afterpay breached money laundering laws’, you could be forgiven for thinking the APT share price would get smashed.
Here are the key quotes:
‘Afterpay’s AML/CTF Program has also evolved over time and is now appropriately aligned to the AML/CTF Act and Rules.’
‘Based upon legal advice in 2016, Afterpay initially focused its AML/CTF controls upon merchants. Afterpay’s current AML/CTF controls are more appropriately focused on consumers.’
AUSTRAC will now be taking a look at the report to determine whether or not it will take further action.
How much further could the Afterpay share price go up?
Think of Afterpay as the bitcoin of fintechs — they cracked the BNPL code and due to their significant and growing market share it’s (personally) hard to see a massive plunge coming anytime soon.
As a result, it is now a staple in many mainstream Australian portfolios.
And if the company gets a tick from the regulator and stays on trend, it is possible it could hit $38 before Christmas.
The trick though is to see the bigger picture though — the unbundling process spreading throughout the Australian financial system.
Call it the rise of the ‘alt-fintechs’. These are smaller companies that are going after just about every facet of the banking industry. are just the beginning.
In addition to a profile on Afterpay, we take a look at two more fintech plays here.
For Money Morning