In a significant development, the U.S. division of The Brink’s Company has agreed to pay a substantial sum of $42 million in penalties and settlements. This comes after the company admitted to operating as an unlicensed money transmitting business and violating the Bank Secrecy Act (BSA), the primary anti-money laundering law in the United States. The settlement involves two agreements: one with the Department of Justice (DOJ) and another with the Financial Crimes Enforcement Network (FinCEN). The violations occurred between 2018 and 2020, involving large-scale currency shipments without proper registration or compliance measures.
Detailed Report on Brink's USA's Regulatory Breaches
In the heart of a complex financial regulatory landscape, Brink’s Global Services USA faced serious allegations that it had been transporting large sums of money across borders and within the country without adhering to crucial anti-money laundering (AML) protocols. Specifically, the company was found to have moved over $15 million from San Diego to Florida in multiple transactions without verifying the final beneficiaries. Additionally, it imported more than $35 million from Mexico into the U.S. on eight occasions, all while failing to register as a money transmitter or implement necessary AML controls.
Between 2018 and 2020, Brink’s USA also transported approximately $800 million in bulk currency transactions as an unregistered money services business, involving countries like the U.S., Mexico, and Spain. These actions exposed the U.S. financial system to heightened risks of illicit activities, including narcotics trafficking. FinCEN’s Director Andrea Gacki emphasized the severity of these breaches, noting that they undermined the integrity of the financial system. This case marks the first enforcement action by FinCEN against an armored car company and the first DOJ settlement with such a firm based on criminal wrongdoing for failing to register as a money transmitter.
The terms of the settlement require Brink’s USA to pay $42 million over three years. Initially, the DOJ sought a forfeiture of $50 million but reduced this amount due to the company’s swift response in enhancing its ethics and compliance program. FinCEN imposed a civil penalty of $37 million but credited Brink’s USA $20 million for its payment to the DOJ, resulting in a final penalty of $17 million.
Following the discovery of these issues, Brink’s conducted an internal review and has since bolstered its global ethics and compliance program. Enhancements include adding more full-time compliance professionals and refining AML controls and customer verification policies. Mark Eubanks, President and CEO of Brink’s, affirmed the company’s commitment to maintaining compliant operations and continuous improvement in addressing evolving compliance risks.
From a journalistic perspective, this case highlights the critical importance of stringent AML regulations in safeguarding the financial system from illicit activities. It underscores the need for companies, especially those handling large sums of cash, to prioritize compliance and transparency. The swift action taken by Brink’s to rectify its shortcomings serves as a positive example of corporate responsibility in the face of regulatory scrutiny. However, it also raises questions about the adequacy of existing oversight mechanisms and whether similar breaches could be occurring elsewhere in the industry.