Drug traffickers and other criminals are increasingly seeking out indirect relationships with community banks and credit unions to move and launder their illicit proceeds after being turned away by larger financial institutions, say sources. Recent years have seen several of the world's largest banks sever ties to money services businesses and correspondent clients in high-risk regions of the world after incurring billions of dollars in legal and regulatory penalties for anti-money laundering and sanctions-related violations. These and other corporate and individual clients sometimes manage to regain access to the global financial system by opening accounts at smaller institutions eager for...
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.
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.