A civil court hearing in Minneapolis on Friday will mark the first test of the U.S financial intelligence unit's power to fine individuals accused of violating federal anti-money laundering program rules. In May, attorneys for former MoneyGram chief compliance officer Thomas E. Haider filed a motion to dismiss a $1 million civil monetary penalty (CMP) assessed last year against their client by the Financial Crimes Enforcement Network (FinCEN) for allegedly "willful" violations that facilitated a $128 million telemarketing fraud scheme. The scam, which tricked thousands of Americans into wiring money to Canada, became the subject of a $100 million settlement...
"This time it's personal" was a promo line for "Jaws: The Revenge," the unsuccessful fourth Jaws movie featuring a great white shark that pursues a family from New England to the Bahamas. To the degree regulators are pursuing individuals for compliance failures, this time IT IS personal too.
A recent regulatory penalty citing a Brown Brothers Harriman executive made a compliance director at Bank of America wonder about his future personal liability, attendees of a business forum heard Tuesday.
The terms of a $100 million settlement disclosed Friday by MoneyGram for anti-money laundering lapses will cost the Dallas-based money remitter nearly $200 million once completed, regulatory documents show.
The U.S. Justice Department is investigating possible anti-money laundering compliance infractions related to how MoneyGram oversees agents working near Mexico's border, say current and former government sources.