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Western Union signs agreement with US Justice

Categories : Cash is universal
February 27, 2017
Tags : Fraud, Money laundering, Security, US
Western Union recognizes its fault in an international fraud scheme that lasted 8 years and agrees to pay a record fine to the US Department of Justice to settle charges.
Communication Team / Equipo de Comunicación

Western Union Company admitted its guilt in the anti-money laundering fraud it has been charged with by the US Justice Department and accepted to pay a fine of 586 million USD to settle criminal and civil charges. The American company recognized to have « wilfully failed to maintain an effective anti-money laundering programme and aided and abetted wire fraud ».

Western Union is accused of having processed hundreds of thousands of fraudulent transactions between 2004 and 2012 in the framework of an international consumer scam. The fraudsters contacted random people and posed as relatives in need or offered fake prizes and job opportunities. The victims were then asked to send money through Western Union’s global money transfer network to obtain their rewards or to help their families. Many agents of Western Union were involved in the fraud scheme but the company always refused to take action to address the situation.

Moreover, the authorities discovered that hundreds of millions of dollars had been sent to China to circumvent the Bank Secrecy Act. Western Union stated that it is working hard to enhance its anti-fraud programme and better protect its customers in the future.

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