US queries PayPal in money laundering probe

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US authorities have demanded information from online payment service PayPal, with its European headquarters in Luxembourg, as part of a money laundering investigation, according to a regulatory filing available on Wednesday.

“We have received subpoenas from the US Department of Justice seeking the production of certain information related to our historical anti-money laundering program,” Silicon Valley-based PayPal said in an annual report to the US Securities and Exchange Commission.

PayPal noted that it was cooperating with authorities and did not speculate on the outcome of the investigation. No further details were provided.

The news appeared to weigh slightly on PayPal shares, which were down more than 1.5 percent to $40.24 in after-market trades on the Nasdaq.

The investigation does not appear to affect Paypal in Europe with its headquarters on Boulevard Royal in Luxembourg City. The online platform has been present in the Grand Duchy since 2007 employing about 70 people.

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