Fintech, Finance, Technology, Banking Highlights – 8 January 2018
Western Union fined $60 million for violating AML laws
Financial Services Superintendent Maria T. Vullo today announced that Western Union has agreed to pay a $60 million fine as part of a consent order with the New York State Department of Financial Services (DFS) for violations of New York Bank Secrecy Act (BSA) and anti-money laundering laws (AML).
An investigation by DFS found that, for more than a decade, Western Union failed to implement and maintain an anti-money laundering compliance program to deter, detect and report on criminals’ use of its electronic network to facilitate fraud, money laundering and the illegal structuring of transactions below amounts that would trigger regulatory reporting requirements. In addition, the DFS investigation discovered that senior Western Union executives and managers willfully ignored, and failed to report to DFS, suspicious transactions to Western Union locations in China by several high-volume agents in New York, other states and around the world, including money transfers that may have aided human trafficking. DFS licenses and regulates money transmitters in New York State and is the sole regulator for Western Union in New York State.
“Western Union executives put profits ahead of the company’s responsibilities to detect and prevent money laundering and fraud, by choosing to maintain relationships with and failing to discipline obviously suspect, but highly profitable, agents,” said Superintendent Vullo. “DFS will not tolerate unlawful activity that undermines anti-money laundering laws and endangers the integrity of our financial system.”
Envestnet completes acquisition of FolioDynamix
Envestnet, a provider of intelligent systems for wealth management and financial wellness, announced that it has completed the acquisition of FolioDynamix from Actua Corp.
The acquisition was first announced on September 25, 2017. “We are pleased to welcome FolioDynamix and their clients and partners to Envestnet,” said Jud Bergman, Envestnet Chairman and CEO. “This is the next important step in developing a financial wellness network that enables advisors and enterprises to improve their productivity and deliver better outcomes for their clients.”
“By joining forces with Envestnet, our customers will have access to the trading tools and commission and brokerage support that they are accustomed to, as well as Envestnet’s robust and integrated wealth management solutions,” said Joseph Mrak, Chairman and CEO of FolioDynamix. “We are excited to see where this collaboration takes us and the wealth management industry as a whole.”
Dash to bring cryptocurrenyc payments to retailers in Spain
Dash, the top digital currency for payments, today announced a partnership with Bitnovo, the Spanish cryptocurrency payment platform, allowing consumers to purchase Dash in over 10,000 retailers throughout Spain.
The partnership will see Dash available for purchase in thousands of stores through coupons and in selected Carrefour and Media Markt outlets through the purchase of gift cards.
Commenting on the partnership, Fernando Gutierrez, Head of Legal at Dash said, “As the subject of cryptocurrencies finds its way into conversations around the globe, the primary barrier to widespread adoption of digital assets remains the same. While there is incredible eagerness to enter this arena, the convoluted path to entry remains a significant roadblock for most interested parties.”
“Creating a platform that is open and accessible to all has been a core value since our inception. Partnering with Bitnovo gives us the chance to make accessing our unmatched currency as easy as buying a loaf of bread in your local market,” added Gutierrez.
