Brink's affiliate agrees to shell out $42 million to resolve allegations from FinCEN and DOJ
Brink's Global Services USA has agreed to pay a settlement of $42 million to resolve charges brought by federal regulators over violations of the Bank Secrecy Act (BSA). The settlement, announced on Thursday, involves the company's failure to register a money transmitting business as required by law and willful violations of the BSA.
The BSA is designed to prevent money laundering and other financial crimes by requiring financial institutions to maintain appropriate records and report suspicious activity. Brink’s, an armored car company involved in handling cash and financial transportation services, did not comply with these key regulatory obligations, leading to significant penalties.
FinCEN, the Financial Crimes Enforcement Network, imposed a civil monetary penalty of $37 million on Brink's Global Services. The Department of Justice forgave approximately half of the original penalty due to the company's compliance improvements. FinCEN credited BGS $20 million for its payment to the DOJ.
The settlement underscores the gravity of these compliance failures by a major industry player. According to FinCEN's Director, Andrea Gacki, Brink's moved large sums domestically and across the Southwest Border without required Anti-Money Laundering (AML) controls.
In response to the settlement, Brink's Global Services beefed up its ethics and compliance program. New roles within the department, including a deputy chief ethics and compliance officer, were created. The company significantly increased its compliance staff, which may have reduced the risk of money laundering, including from narcotics trafficking and other illicit activities (implied, not explicitly stated in the text).
Regulations and policy changes may have been implemented as a result of the settlement, although the specifics were not extensively elaborated in the available information. This is the first resolution with an armored car company related to BSA violations, according to the DOJ.
One of the high-risk entities involved later pleaded guilty to BSA violations. The final beneficiary of these transactions was ultimately transmitted to a third-party not identified by Brink's Global Services. In 2019 and 2020, Brink's Global Services transported more than $15 million from a money service business in San Diego to a separate money service business in Florida through 12 transactions.
The settlement represents the regulatory emphasis on compliance with anti-money laundering laws like the BSA, and the case against Brink’s highlights the government's commitment to enforcing registration and internal control requirements on companies operating in money transmission and related financial services sectors.
[1] Source: FinCEN Press Release, Department of Justice Press Release [3] Implied from the provided information but not explicitly stated in any source
Brink's Global Services operated in the business of handling cash and financial transportation services, but failed to register a money transmitting business and violated the Bank Secrecy Act (BSA), leading to a settlement of $42 million. To rectify this, Brink's beefed up its ethics and compliance program, creating new roles and increasing its compliance staff, which may help reduce the risk of future money laundering in finance.
