Trusts & cash flow management (aka PayPal & AU Anti Laundering Legislation)

By now all Australian business owners making use of PayPal should have received an email about the gathering of business information for Australian PayPal accounts with transactions over a certain (unspecified) level as a part of the Australian Anti-laundering Legislation. When you reach this level they will limit your account until you provide the additional information.

I guess this blog post serves as a warning to those who operate as a Trust (either Discretionary Services or Discretionary Trading) that you may be in for a wait. In the last hour I have had the joy of advising someone in U.S.A. that there are a few of us that will be not be able to truthfully complete their few questions because the first question is a multiple choice for your business type and they failed to include trusts in that list. (Apparently I am the likely the first to report this problem).

If your business operates as a Trust and has a PayPal account please make alternative cash flow management arrangements for your business. When they limit your account they remove your ability to withdraw from your account until your details are verified. In the case of Trusts, this is not yet possible so prepare for a longer than 24-48 hour wait.

For those working in business services with clients that meet this criteria - please pass this information on for their reference.

Edited to add:
This is perhaps not the worst part for some businesses either. As part of the limitations PayPal users are also denied the ability to send payment requests. Being locked out of an essential service is not my idea of a good situation.