In January 2017 the money-transfer company agreed to pay USD 586 million to resolve similar claims by the US Department of Justice and the Federal Trade Commission. The New York Department of Financial Services (DFS) alleged that from 2004 to 2012, Western Union failed to implement and maintain an effective anti-money laundering program aimed to deter criminals’ use of its electronic network to facilitate fraud and money laundering.
The regulator said senior Western Union executives and managers also ignored suspicious transactions to Chinese Western Union locations by several high-volume agents, including money transfers linked to human trafficking.
As part of the settlement, Western Union must submit a written plan to DFS aimed at ensuring the adequacy of its anti-money laundering and anti-fraud programs. It must also submit progress reports to DFS, the online publication continues.
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