An ongoing legal battle between US remittance giant Western
Union and Arizona’s Attorney General, Terry Goddard, dating back to
2006 is set to drag on into next year.
The saga began in September 2006 when Goddard obtained a warrant
seeking to seize all Western Union transfers over $500 sent by
anyone in 28 states to locations in the Mexican state of
Sonora.
Go deeper with GlobalData
The objective of the seizures was to crack down on illegal
transfers federal investigators estimate earn criminals in Arizona
alone between $1.7 billion and $2.5 billion annually in “fees”.
Following a court hearing in January 2007 the seizures were
declared invalid. However, in July 2008, the Arizona Court of
Appeals reversed the ruling and held that Arizona could seize money
sent by people in states other than Arizona to Mexico.
In response to this decision, Western Union requested the
Arizona Supreme Court to review the decision. The hearing on 5
December 2008 produced mixed results.
On one of three legal issues presented – Western Union’s
petition to review the issue of whether the Court of Appeals
improperly found probable cause to seize money transfers – the
court ruled in favour of the attorney general.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“I am pleased the court acknowledged that we have probable cause
to seize money transfers believed to be payments to human smugglers
in Mexico,” commented Goddard.
However, the court ruled in Western Union’s favour on two
issues. The first concerns whether Arizona has jurisdiction to
seize out-of-state wire transfers. The second relates to whether
extraterritorial seizures violate the US Constitution.
“Review of the two other matters gives us opportunity to obtain
a more favourable classification of our jurisdiction regarding
human smuggling crimes that affect Arizona,” added Goddard.
He continued: “This case concerns critical questions about
whether businesses have the responsibility to assist the State in
our efforts to curtail illegal immigration and organised crime.
“Stopping the flow of funds is the most effective tool in our
fight against violent smuggling cartels operating along the US
-Mexican border.”
