News
Justice Department Looking into Alleged AML Violations at MoneyGram
By Brian Monroe
printThe 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. The potential violations by the Minneapolis, MN-based money services business (MSB) revolve around the company's expansion in the Southwest United States in recent years-a strategy that sharply increased its number of agents who were not properly overseen, according to a person with direct knowledge of the investigation, who spoke on the condition of anonymity. "MoneyGram set up a bunch of relationships with mom-and-pop operations, which eliminated a lot of overheard costs, but didn't...
TO READ THE FULL STORY
Related News
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.
The United States Thursday fined a former chief compliance officer for MoneyGram $1 million for his alleged role in the company's 2012 violations of anti-money laundering laws.
Untimely suspicious activity report filings by banks and the temporary storage of IP addresses by service providers are among the factors that hamper federal investigations of financial fraud against the elderly, U.S. officials and industry representatives said Tuesday.
Money services businesses in Quebec are struggling to deal with the impact of unprecedented provincial registration and anti-money laundering requirements that took effect this year, say analysts.
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.
An agreement by one the nation's largest money transmitters to better share transactional data with investigators has resulted in greater scrutiny, both for the business and its chief competitor.
When training agents working through money services businesses, compliance officials should take a creative, multimedia approach, said Anthony Rodriguez, global compliance officer at the Los Angeles-based Associated Foreign Exchange, Inc (AFEX).
The implementation of U.S. dollar deposit limits at Mexican financial institutions has sparked an influx of cash deposits into U.S. banks, who are failing to properly scrutinize the funds, according to Cameron Holmes, a senior litigation counsel in the Arizona Attorney General's office.
Western Union will pay $94 million to resolve claims by the Arizona Attorney General's office that the company wasn't doing enough to combat Mexican money launderers and human traffickers.
Sigue, based in San Fernando, Calif., will forfeit $15 million and spend $9.7 million to upgrade its AML program as part of a deferred prosecution agreement with the Justice Department. Fortent Inform first reported the record penalty on January 11.
The case points to the difficulties that large money service businesses face in detecting compliance violations at associated stores, compliance consultants say.
Western Union, the huge global money transfer business, continues to pay large penalties for inadequate money laundering control procedures.