Today, Chairman John Moolenaar (R-MI) and Ranking Member Raja Krishnamoorthi (D-IL) of the House Select Committee on the Chinese Communist Party sent a letter to PayPal Holdings, Inc. The lawmakers are seeking assurances that PayPal will fully comply with anti-money laundering laws as it partners with Tencent's Tenpay Global, which operates Weixin (WeChat) Pay.
In their letter, they state: "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."
They also note: "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."
Moolenaar and Krishnamoorthi have also asked for documents related to the integration between PayPal and Tencent and requested a briefing to ensure regulatory compliance.
The committee has made combatting money laundering and illicit finance a priority. Earlier this week, it held a roundtable focused on Hong Kong's role in facilitating money laundering and sanctions evasion for entities connected to the People's Republic of China.
