Between January 1, 2004 and January 19, 2017, consumers were scammed into sending more than $500 million to fraudsters through Western Union. In a federal lawsuit filed by the FTC against Western Union, Western Union and its subsidiaries were accused of helping to facilitate fraud by its failure to comply with anti-money laundering laws.
Western Union Admits They Looked the Other Way
According to an FTC press release, Western Union admitted that their company lacked the necessary “checks and balances” to put a stop to the criminal use of their money wiring services. Because of their actions, the company will refund $586 million to affected consumers.
Chief Richard Weber of the Internal Revenue Service’s Criminal Investigations unit stated that, “As a major player in the money transmittal business, Western Union had an obligation to its customers to ensure they offered honest services, which include upholding the Bank Secrecy Act, as well as other U.S. laws. Western Union’s blatant disregard of their anti-money laundering compliance responsibilities was criminal and significant.
