The U.S. Treasury Department has contacted a former MoneyGram International Inc compliance chief to inform him that he could face a fine of up to $5 million in relation to the money transfer firm’s previously admitted failures to adequately supervise transactions for illegal activity, sources have told Reuters.
In November 2012, MoneyGram agreed to forfeit $100 million and entered into a deferred prosecution agreement with the Justice Department for aiding and abetting wire fraud and failing to maintain an effective anti-money laundering program. Court documents alleged that corrupt MoneyGram agents and others ran a mass marketing and consumer fraud phishing scheme that defrauded tens of thousands of people in the United States. MoneyGram’s failure to maintain an effective anti-money laundering program violated the Bank Secrecy Act.
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