Brink’s Global Services USA (BGS USA), a subsidiary of The Brink’s Company, has reached settlements with the U.S. Department of Justice (DOJ) and the Financial Crimes Enforcement Network (FinCEN) regarding investigations into its cross-border currency shipments. The company has agreed to pay a combined $42 million over three years as part of these resolutions. The decision follows allegations that BGS USA failed to comply with federal money-transmitting laws and anti-money laundering (AML) regulations. The agreements also mandate additional compliance measures. These developments underscore the challenges faced by financial service providers in adhering to strict regulatory expectations.
A similar investigation into compliance failures within the financial services sector previously led to substantial penalties for other companies. Regulatory authorities have intensified their scrutiny of money-transmitting businesses in recent years, emphasizing the importance of AML protocols. In earlier enforcement actions, financial firms faced penalties for insufficient monitoring and reporting of suspicious transactions. The latest Brink’s settlement aligns with this broader regulatory trend, which aims to strengthen oversight and prevent financial crimes linked to illicit activities such as drug trafficking.
What Are the Key Findings in the Investigation?
The DOJ and FinCEN found that BGS USA transported large sums of cash without implementing the required AML controls. FinCEN stated that the company failed to register as a money services business, develop a functional AML program, and submit suspicious activity reports. These lapses, according to regulators, heightened the risk of illicit financial activities within the U.S. banking system. The DOJ’s investigation also revealed that BGS USA had been operating as an unlicensed money transmitter, leading to a forfeiture of $50 million in addition to the civil penalties imposed.
How Has Brink’s Addressed Compliance Deficiencies?
Brink’s reported that it had cooperated throughout the investigations and has taken steps to strengthen its compliance framework. The company stated that it has improved its global Ethics & Compliance program to address regulatory concerns. Brink’s President and CEO Mark Eubanks emphasized the company’s commitment to ongoing enhancements in compliance and risk management, acknowledging that regulatory risks continue to evolve.
“Upon learning of the DOJ investigation in 2020, we conducted our own thorough internal review and have since implemented further enhancements to our global Ethics & Compliance program, which were acknowledged by the DOJ in our agreement,” said Mark Eubanks.
FinCEN underscored the potential consequences of insufficient compliance measures. The agency asserted that the lack of proper AML protocols at BGS USA exposed the financial system to risks associated with narcotics trafficking and other illicit transactions. Regulators noted that effective oversight is critical for ensuring that financial service providers do not inadvertently facilitate illegal activities.
“For years, Brink’s moved large sums domestically and across the Southwest border without required AML controls, exposing the U.S. financial system to a heightened risk of money laundering, including from narcotics trafficking and other illicit activity,” said FinCEN Director Andrea Gacki.
The agreements also stipulate that Brink’s will undergo additional compliance reviews to ensure it meets financial security standards. The company will be required to demonstrate improvements in its AML policies and practices to regulatory authorities as part of its settlement terms. These obligations reflect a broader industry-wide effort to tighten money laundering safeguards across financial institutions.
Regulatory enforcement in the financial sector has intensified, particularly concerning AML compliance. Companies involved in cash transportation and cross-border currency transactions face significant scrutiny to ensure adherence to financial regulations. The Brink’s case highlights the potential financial and reputational risks for businesses that fail to implement adequate compliance protocols. Financial service providers are increasingly required to invest in robust monitoring systems and internal controls to mitigate regulatory risks. Moving forward, companies operating in this sector may need to allocate more resources to compliance programs to avoid similar enforcement actions.
