they've been fined 480k for "failing to adhere to anti-money laundering regulations", PYYPL cooperated & agreed to settle & pay the fine to which they received a discount of 20% (the fine was originally set at 600k), probably they're upgrading their system to comply with the regulations
So, from what I understand the government think they don't have a good monitoring system to check if their user is doing money laundering or not. This makes it a bit surprising if the number of KYC requests as mentioned by others is true. In other words, they don't really monitor user's activity but will keep their personal data updated as often as possible. What kind of upgrades are they doing then? Are they saying that it will apply a more strict monitoring process for every transaction?