The U.S. Financial Crimes Enforcement Network disclosed a $500,000 civil monetary penalty Wednesday against a Bronx-based credit union for what the bureau said were willful failures to comply with anti-money laundering regulations.
Money remittance firms serving U.S.-based Somalis have more than doubled their monthly cash declarations at border crossings since last spring, according to data provided by an American official.
U.S. bank restrictions have exacerbated the troubles of Somali money services businesses to the point that companies and individuals alike are resorting to complex workarounds to send money to the East African nation.
The U.S. Treasury Department's financial intelligence unit fined a Florida credit union $300,000 Tuesday for providing banking services to high-risk money services businesses with few anti-money laundering controls.
Not all money transmitters are overly vulnerable to money launderers and terrorist financiers and banks should refrain from automatically closing their accounts, U.S. Treasury Department officials said Monday.
Failing to find conventional financial services, some money services businesses have asked armored car companies to bank on their behalf without the knowledge of the institutions maintaining the accounts, say consultants.
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