HALISTER1: WU Said to Keep Compliance Spending Unchanged After Settlement

WU Said to Keep Compliance Spending Unchanged After Settlement

(Bloomberg) -- Western Union, which spends 3.5%-4.0% of revenue on regulatory compliance, is said to keep that level of investment unchanged after agreeing to pay $586m for failing to stop money laundering and wire fraud, a person familiar with the matter said.
  • WU expects “some” increase in compliance costs following settlement with DOJ and FTC
  • WU is also said to be in settlement discussions regarding a continuing investigation by a group of U.S. state attorneys general that focuses primarily on oversight of certain agents and whether an anti-fraud programs adequately prevented misconduct
    • NOTE: See page 16 of 10-Q for details about state AG probe
  • NOTE: Earlier, Western Union Probe May Benefit MoneyGram, Euronet: SunTrust
  • NOTE: Feb. 23, Western Union Quizzed by EU in Money-Transfer Antitrust Probe
  • NOTE: Feb. 19, Western Union Says U.S. Money Laundering Probe Tied to Gaming
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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WU US (Western Union Co/The)

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