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. In a civil monetary penalty, the Financial Crimes Enforcement Network (FinCEN) said that Miami Gardens, FL-based North Dade Community Development Federal Credit Union failed to adequately implement internal controls and report suspicious activities linked to subaccounts held for a third-party vendor. The unnamed vendor, which operates as a money services business (MSB), served as a conduit to the credit union's services for dozens of similar companies in the Middle East and Latin...
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.
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.
A tiny Dover, New Jersey, credit must improve nearly every aspect of its anti-money laundering compliance program and undertake a potentially expensive look-back of the identities of its member base for the past seven years, according to a National Credit Union Administration order released Tuesday.