Western Union (WU) Admits To Allowing Criminals Commit Wire Fraud
Author By Sophia VidaPosted on The world’s biggest money-transfer company, Western Union Co. just received a pretty expensive penalty.
According to U.S. authorities, Western Union has agreed to pay $586 million and admitted to turning a blind eye as criminals used its service for money laundering and fraud.
The U.S. Department of Justice and the Federal Trade Commission said in statements that Western Union admitted “to aiding and abetting wire fraud.”
The money transfer company had allowed scammers to process transactions, even when the company realized its agents were helping scammers avoid detection.
U.S. authorities revealed that Chinese immigrants used the service to send hundreds of millions of dollars to pay human smugglers, wiring the money in smaller increments to avoid federal reporting requirements.
“Western Union is now paying the price for placing profits ahead of its own customers,” said Acting Assistant Attorney General David Bitkower.
Disclaimer: We have no position in The Western Union Company (NYSE: WU) and have not been compensated for this article.
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