Monitor certifies MoneyGram’s AML program after lengthy DPA

MoneyGram, along with the U.S. Attorney’s Office for the Middle District of Pennsylvania and the Money Laundering and Asset Recovery Section of the Department of Justice’s Criminal Division, filed a joint status report with the U.S. District Court for the Middle District of Pennsylvania regarding the status of the DPA, the company stated in its Form 8-K.

“In the joint status report, the parties confirmed that MoneyGram has satisfied its financial obligations under the DPA and that, pursuant to the terms of the DPA, the independent compliance monitor has certified to MoneyGram and the government that MoneyGram’s anti-fraud and anti-money laundering compliance program, including its policies and procedures, are reasonably designed and implemented to detect and prevent fraud and money laundering and to comply with the Bank Secrecy Act,” MoneyGram stated.

The joint status report added MoneyGram’s intent, through its CEO and chief compliance officer, is to certify on May 10 that it has “fulfilled its obligations under the DPA.” The government is then expected to dismiss the matter within 45 days of that date, MoneyGram stated, “provided that the company has otherwise complied with the DPA.”

In November 2012, MoneyGram agreed to forfeit $100 million and enter into a DPA with the Justice Department for processing thousands of transactions for its own agents known to be engaging in a widespread money laundering scheme that defrauded tens of thousands of people out of at least $100 million.

According to court documents, MoneyGram profited from the scheme by collecting fees and other revenues on the fraudulent transactions from 2004-09.

In 2018, the DPA was extended for an additional 30 months, and MoneyGram agreed to forfeit $125 million because of “significant weaknesses” discovered in its AML compliance program, the Justice Department stated.

In addition, MoneyGram was required to enhance its anti-fraud and AML compliance programs.

Among the AML compliance enhancements MoneyGram said it accomplished were conducting enhanced due diligence on agents deemed by MoneyGram to be high risk or operating in high-risk areas; monitoring all money transfer transactions originating in the United States for fraudulent transactions; and developing and implementing a risk-based program of transaction monitoring.