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Western Union to Pay $586 Million Over Failure to Stop Fraud

  • Company admits it failed to maintain money-laundering controls
  • U.S. says firm enabled illegal gambling and fraud schemes
Updated on

Western Union Co. agreed to pay $586 million and admitted it failed to stop money laundering and wire fraud as part of a deal with the U.S.

Lapses in the company’s anti-money laundering controls allowed hundreds of millions of dollars in prohibited transactions to be processed, enabling the proliferation of illegal gambling and scams that defrauded tens of thousands of victims, U.S. authorities said Thursday. Undocumented immigrants from China used Western Union to wire money from New York and California to their human smugglers, the Justice Department said.