N.Y. Fines Western Union $60M for Lax Money-Laundering Controls

Money transfer giant Western Union will pay New York state $60 million to settle allegations it violated money laundering laws and ignored suspicious transactions to China.

Western Union failed to maintain an effective anti-money laundering program from 2004 to 2012, the New York Department of Financial Services (DFS) said in a statement Jan. 4.

A DFS investigation found the money services company did not implement a program to detect and deter suspected criminal fraud, money laundering, and illegal “structuring” schemes—in which large sums are broken into several smaller transactions to avoid detection by authorities.

The DFS said its investigation also ...