Anti-Laundering limits - request for ID verification

[Modee]

PayPal Australia is beginning to send out the below email, in response to processors who receive a gross of AUS 5000 or more in a given period of time:

Dear ____________,
We are contacting you because changes to Australian anti-money laundering laws require PayPal to confirm the identity of its customers whose accounts reach a specific transaction level.

Our records indicate that your account falls into one of the following categories, and requires your attention:
- Your account has almost reached the transaction level. Once this level is reached, PayPal is required to confirm your identity; otherwise a restriction will be imposed on your account preventing you from sending payments or withdrawing funds.
- Your account has previously surp***ed the transaction level (the anti-money laundering laws apply retrospectively from December 2007). *If your account reaches this limit again or you do not respond to this request within 60 days, a restriction will be imposed on your account preventing you from sending payments or withdrawing funds.

Please act now and avoid any potential restrictions. Log in to your PayPal account. On the My Account Overview page, look for the notice that directs you to the steps required for confirming your identity.

If you have any trouble completing these steps, please call Customer Service at 1800-073-263.

For reference, your case ID number is PP-xxx-xxx-xxx.

We appreciate your business and patience in helping us comply with Australian law.



Sincerely,
PayPal



Please do not reply to this email. We do not monitor this mailbox, and you will not receive a response. For ***istance, log in to your PayPal account and click the Help link located in the top right corner of any page. If your enquiry is regarding a claim, log in to your PayPal account and go to the Resolution Centre.

[wanted2]

i believe the number $5,000 is wrong.

i received $1,020 one time a few months ago and iam australian paypal. i sold items on ebay and one item was about $550 each and i sold 2 of them in the same time. i received about $1020 in 1 day and ive never received any other money for the last 6 months prior to that as i was not an ebay seller. i was just getting rid of 2 items. that was the only money i received in 6 months and they sent me that email. i have then now wen i sell items make sure it adds up to less than $1,000 in 1 day and ive never had that problem since. so i think the magic number is $1,000

[Modee]

Well the official trigger is AU 5000.

However in the U.S. the rule of thumb for PayPal is that withdrawing (taking out) funds from a new PP account over US $1000. at a time usually triggers a limitation and request for verifying information.

So I suppose it makes sense that the "1000" number is problematic in Australia too. Have you tested to see whether the email comes to you after you merely sell over a thousand in one day, or try to withdraw over a thousand from your account at once?

[L67]

I have received the request after one transaction, and again on another account after about AU$6000. I think it depends on the age of the account, whether you change your details in eBay or how much your throughput is over a given time. Of course document are easily "customized" to suit your requirements.

On one account I was withdrawing between $1000 and $3000 per day for about a week and PayPal rang me about 10 seconds after 1 withdrawal wanting to know where I sourced my product and to verify who I was. I gave them some fictional website and confirmed my details and away we went.

[Dr.Yes]

The amount of money coming in on a daily basis can also trigger the limitation (in the USA anyway) If you receive more than 500 dollars in a day, or more than 250 on a transaction, that throws up a red flag. So says a paypal rep as of a few days ago.

[John14789]

Well if the Paypal account is more than six months old then withdrawing more than 1k or recieving $500 or more than $250 per transaction isn't an issue. I have tried and tested this. If the amount goes over 2.5k or 3k then there is a problem.

[L67]

I did have a ID request and account hold with an older PP account that had been inactive for about 8 months. I think it might depend on a number of factors, at least for paypal AU.