As long as the transaction is legal, paypal should allow it to go through. They should not be discriminating against certain groups (as bad as they might be). They should maximize stock holder value as opposed to being biased against some groups. If they are wasting time/money with stuff like this, it really make one wonder what else they are wasting their time/money. I think I need to make sure that any paypal stock (and funds containing it) that I have needs t be sold and not to purchase any in the future.
Unless I am missing something, there is a terrorist watchlist or similar and I don't think it is legal to send to groups on that said list. So, I will stick with my statement that they should not be biased against parties that can legal participate in transactions.