The U.S. House Select Committee on Strategic Competition between the United States and the Chinese Communist Party (“CCP”) recently announced that it was seeking assurances from PayPal Holdings, Inc. that the company would fully comply with U.S. anti-money laundering (“AML”) requirements in response to its recent partnership with Tenpay Global, the operator of Weixin (WeChat) Pay. According to the Committee, PayPal’s new pay integrations will enable users in the United States, 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 purchase inside the PRC using Weixin Pay QR codes.” The Committee had concerns that the integration could enable Chinese Money Laundering Organizations with links to fentanyl trafficking and other illicit financial activity, to use PayPal-Weixin Pay channels to transmit illicit funds.
While acknowledging PayPal’s historical compliance efforts, the Committee sent a letter requesting PayPal – a registered Money Services Business that is required to meet certain AML standards – to practice enhanced due diligence, heightened transparency and implement controls that address the threats posed by Weixin Pay, especially in light of the U.S. Government’s designation of Tencent Holdings, Tenpay’s ultimate parent company, as a “Chinese military company.” The Committee also requested that PayPal attend a staff briefing and produce documents by October 3, 2025 that would enable Committee members to “evaluate PayPal’s compliance posture.”
The Select Committee on the CCP Press Release | Letter