Share

Payment services company MoneyGram will pay USD100m as part of an agreement with the US Department of Justice (USDOJ) over charges relating to wire fraud and money laundering.

Between 2004 and 2009 tens of thousands of US citizens were victims of mass marketing and consumer fraud phishing schemes operated by corrupt MoneyGram agents and other parties.

In each case, MoneyGram’s money transfer system used and the company profited by collecting fees on these fraudulent transactions. The USDOJ criticised MoneyGram for not terminating agents who had been indentified by its own fraud department for operating scams.

The other charges related to MoneyGram’s failure to meet its anti-money laundering (AML) obligations under the Bank Secrecy Act (BSA). Again, the USDOJ attacked the company’s ineffective fraud department, when it recommended 32 specific Canadian agents should be closed immediately MoneyGram continued to process transactions by these outlets.

Assistant Attorney General Lanny A. Breuer said: "MoneyGram’s broken corporate culture led the company to privilege profits over everything else. MoneyGram knowingly turned a blind eye to scam artists and money launderers who used the company to perpetrate fraudulent schemes targeting the elderly and other vulnerable victims."

MoneyGram is the second largest money transfer business in the world and had revenues of USD1.25bn in 2011.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.