New York, Aug 16: Western Union, the money transfer company, agreed to spend $5m to address alleged violations of state and federal money-laundering laws and regulations, California’s Department of Financial Institutions has said. California said the consent agreement requires Western Union, a unit of Denver-based First Data, to spend the $5m in the state to enhance its compliance with the Bank Secrecy Act and to train agents.
It said the agreement arose out of Western Union’s alleged failure in ‘02 to file certain transaction reports and “suspicious activity” reports, and because it inadequately supervised agents. The regulators said Western Union cooperated with its investigation.
The Bank Secrecy Act requires banks to report large cash transactions and maintain records of such things as deposits and checks paid. It is designed to prevent the illegal laundering of money, which involves transfers designed to conceal the money’s source. Bureau Report