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Western Union Could Be Indicted for Poor AML Settlement Compliance
By Brian Monroe and Colby Adams
printOne of the world's largest money services businesses is in danger of criminal indictment for failing to meet the terms of a 2010 settlement with the state of Arizona, say sources. Englewood, CO-based Western Union, which agreed to the $94 million settlement for failing to identify and stop transactions used to funnel the proceeds of human trafficking, is nearing a July 31 deadline to complete steps intended to improve its anti-money laundering (AML) compliance program under the direction of a monitor. Under the agreement, the money services business (MSB) must take steps to comply with AML recordkeeping and suspicious activity...
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The independent court monitor tasked with ensuring Western Union's compliance with the terms of its March 2010 settlement with Arizona prosecutors has been dismissed from the position, say sources.
One of the world's largest money services businesses will pay nearly $10 million and share transactional data with U.S. states and Mexico as part of an extension to a 2010 settlement.
Money launderers working on behalf of Mexican cartels have moved southward after a deferred prosecution agreement between Western Union and Arizona gave investigators unprecedented access to remittance data in Northern Mexico, according to Vince Piano.
The nation's largest money services business has begun imposing new anti-money laundering checks on subagents in Mexico in an effort to comply with its March 2010 agreement with Arizona prosecutors, say sources.
Arizona has granted the nation's largest money transmitter an additional three months to improve its anti-money laundering compliance program and avoid criminal prosecution.
The New Mexico Attorney General's Office has expanded its team of anti-money laundering investigators as a result of a 2010 settlement between the state of Arizona and Western Union, according to the state's top prosecutor.
Unscrupulous financial institutions, legislative delays and a lack of quick action by U.S. federal officials are allowing drug cartels to wash money in the United States "right before our eyes," according to Terry Goddard, the former Attorney General of Arizona.
A 2010 agreement by Western Union to share data with Arizona and other Southwestern states is the catalyst for a major AML prosecution that came to light Thursday.
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.
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.
Arizona investigators are free to seize Western Union money transfers believed to be tied to human smuggling operations, even when the transfers originated from other states, a state court said.
The case points to the difficulties that large money service businesses face in detecting compliance violations at associated stores, compliance consultants say.