How do you send your Drug money to Mexico? Western Union of course!

[Team Sergeant]

How do you send your hard earned "Drug" money to Mexico? Western Union of course! Why take a chance crossing the border with $100,000 in cash when you can just send it via Western Union!!!!!

When $94 million doesn't put you out of business it makes you wonder how many "billions" is being funneled through Western Union. For all those living up north, there's a Western Union in every grocery store here in Arizona and guess who I see standing in line filling out Western Union money transfers.....

Team Sergeant



Western Union to Pay $94 Million to Settle Dispute
Updated: Friday, 12 Feb 2010, 7:57 AM MST
Published : Thursday, 11 Feb 2010, 2:08 PM MST

PHOENIX (AP) — Western Union has agreed to a $94 million settlement Thursday in disputes with Arizona prosecutors that center on the state's effort to reduce the flow of immigrant and drug smuggling money through wire transfers.

The deal includes $50 million for a nonprofit center that will offer grants to law enforcement agencies in California, Arizona, New Mexico and Texas to tackle money laundering and the smuggling of immigrants, drugs and guns along the 2,000-mile border.

"We have literally changed the game," Arizona Attorney General Terry Goddard said of the settlement accepted by Maricopa County Superior Court.

The deal ends several years of disputes over whether Arizona prosecutors should have access to certain records of wire transfers, and whether they can seize suspected smuggling money headed to northern Mexico.



http://www.myfoxphoenix.com/dpp/money/az_western_union_suit_021110

[brown77]

Thanks for the post TS. This is an interesting topic!

WU ought to get their agents hooked up to the World Check system and run ID checks on all transferors. The database is used by major banks and regulated financial institutions as a means to weed out potential criminals/terrorists… it’s an operational requirement!

If an organization chooses to turn its back on black money, there are plenty of tools and methods available for managing AML and the likes. It all comes down to company philosophy. If the sole drive is $$$’s, then who cares about a $94million fine, so long as profits are still healthy! It is encouraging to see companies out there such as Amex who are more reputation and values driven. Let’s see if this latest shake-up serves as a conscience check for Western Union.

It is also worth giving a thought to the whole new wave of online payment solutions. No doubt there are technological holes out there waiting be exploited by the wrong people!

[Team Sergeant]

Thanks for the post TS. This is an interesting topic!

WU ought to get their agents hooked up to the World Check system and run ID checks on all transferors. The database is used by major banks and regulated financial institutions as a means to weed out potential criminals/terrorists… it’s an operational requirement!

If an organization chooses to turn its back on black money, there are plenty of tools and methods available for managing AML and the likes. It all comes down to company philosophy. If the sole drive is $$$’s, then who cares about a $94million fine, so long as profits are still healthy! It is encouraging to see companies out there such as Amex who are more reputation and values driven. Let’s see if this latest shake-up serves as a conscience check for Western Union.

It is also worth giving a thought to the whole new wave of online payment solutions. No doubt there are technological holes out there waiting be exploited by the wrong people!

And ruin a multi-billion dollar business!!!!!!

[Richard]

I was listening to a report yesterday stating Mexico's second largest source of income (PEMEX is #1) is the $$ people receive from relatives living outside the country - mostly from those living in the US. The latest figures show that to be down >16% from a year ago and is having a big impact on the Mexican economy.

Guess times are tough all over.

Richard's $.02 :munchin

[st1650]

Nothing new, criminals have been using semi-anonymous payment services for their business for decades. Internet made it even worse ...

egold, paypal , bidpay, etc etc

Egold was one of the worse until they got shut down in 2008 by the feds.

[brown77]

And ruin a multi-billion dollar business!!!!!!

Perhaps they should not be given a choice. If banks and investment firms have to adhere to certain rules, why shouldn't they?