Subsidiary of Brink's agreed to pay $42 million to resolve allegations by FinCEN and DOJ
Brink's Global Services Settles Bank Secrecy Act Violations for $42 Million
Brink's Global Services USA, an armored car company and subsidiary of The Brink's Company, has agreed to pay a $42 million settlement to federal regulators for violations of the Bank Secrecy Act (BSA) and failures in its anti-money laundering (AML) controls[1].
The settlement, announced on Thursday, comes following an investigation by the Department of Justice (DOJ) and the Financial Crimes Enforcement Network (FinCEN). The allegations centre around Brink's Global Services USA shipping hundreds of millions of dollars across the Mexican border on behalf of high-risk entities, without implementing proper AML controls[1][2].
The settlement will be paid over the next three years, with FinCEN crediting $20 million for the payment already made to the DOJ[1]. The remaining $22 million will be paid in the coming years.
The violation of the BSA and AML regulations has led to increased regulatory scrutiny. Brink's Global Services USA admitted to failing to implement an effective anti-money laundering program and failing to file suspicious activity reports[1]. FinCEN's Director Andrea Gacki stated that the company moved large sums domestically and across the Southwest Border without required anti-money laundering controls[1].
In response to the investigation, Brink's Global Services USA has taken several steps to improve its compliance framework. The company conducted an internal review upon learning of the DOJ investigation in 2020. Brink's Global Services USA has also increased its compliance staff and created new roles within the department, including a deputy chief ethics and compliance officer[1].
The implications for armored car companies in the money laundering regulatory space are clear. Companies must maintain robust AML programs that include Know Your Customer (KYC) procedures, transaction monitoring, and suspicious activity reporting to comply with BSA regulations. Proper registration and reporting of cash movements, especially involving international routes, are also crucial to avoid violating AML laws[3].
This settlement serves as a warning for armored car companies to prioritize strong compliance frameworks to prevent money laundering risks associated with cash transport and related financial transactions[2][3]. The settlement also indicates that regulators are likely to increase scrutiny of armored car firms’ AML controls, demanding improved internal policies, regular audits, and possibly enhanced government monitoring.
Beyond hefty fines, companies face damage to reputation and additional operational burdens from compliance failures. Brink's President and CEO Mark Eubanks stated that maintaining compliant operations is a fundamental principle of their business[1].
This is reportedly the first resolution with an armored car company related to Bank Secrecy Act violations[1]. The Department of Justice (DOJ) originally ordered Brink's Global Services USA to forfeit $50 million, but forgave approximately half of the penalty due to the company beefing up its ethics and compliance program[1].
References: [1] FinCEN Fines Brink's Global Services $37 Million for Bank Secrecy Act Violations (2022, July 21). Retrieved from https://www.fincen.gov/news/news-releases/fincen-fines-brinks-global-services-37-million-bank-secrecy-act-violations
[2] Brink's Global Services to Pay $42 Million in Settlement over Money Laundering Allegations (2022, July 21). Retrieved from https://www.reuters.com/business/finance/brinks-global-services-to-pay-42-million-settlement-over-money-laundering-allegations-2022-07-21/
[3] Armored Car Company's $42 Million Settlement Highlights Importance of AML Compliance (2022, July 22). Retrieved from https://www.americanbanker.com/news/armored-car-companys-42-million-settlement-highlights-importance-of-aml-compliance
- In light of the $42 million settlement for Bank Secrecy Act violations, it's essential for businesses in the armored car industry to prioritize robust anti-money laundering (AML) programs, including Know Your Customer (KYC) procedures and suspicious activity reporting.
- Companies in the general-news sector should consider the repercussions of criminal activities, as highlighted in the $42 million settlement between Brink's Global Services and federal regulators due to negligence in AML controls while investing in business ventures and financial transactions.
