PayPal Holdings Inc.’s anti-money laundering program received subpoenas for information from the U.S. Department of Justice, the company said Wednesday in a filing.
PayPal shares dipped as much as 2.8 percent in extended trading after closing at $40.88.
"We are cooperating with the DOJ in providing information in response to the subpoenas," the company said. "We are unable to predict the outcome of the government’s investigation."
San Jose, California-based PayPal processed $354 billion in transactions in 2016, with about half of the volume overseas. Since it handles transactions across borders, it has to comply with laws targeting money laundering.
PayPal suggested in a statement that the Department of Justice is seeking information regarding PayPal users, not targeting the company in the probe.
"PayPal takes its compliance obligations seriously and is committed to continuously working with law enforcement to combat financial crime," PayPal spokeswoman Ellen Hayes said.
Previous Justice Department investigations involving PayPal include a 2015 conviction of organizers of a software piracy ring who used PayPal to accept payments.
