Financial arm linked to Brink's agrees to a $42 million settlement in response to claims by FinCEN and the Department of Justice.
Brink's Global Services USA (BGS USA), a subsidiary of The Brink’s Company, has agreed to a settlement with the U.S. Department of Justice (DOJ) and the Financial Crimes Enforcement Network (FinCEN) over violations of the Bank Secrecy Act (BSA), specifically anti-money laundering (AML) provisions. The settlement, announced on Thursday, amounts to a civil money penalty of $37 million.
The enforcement action and settlement stem from investigations into BGS USA’s deficiencies in preventing money laundering through currency transport. This resolution marks the first such settlement with an armored car company related to BSA violations, according to the DOJ.
In a statement, Brink's President and CEO Mark Eubanks said, "Maintaining compliant operations for our global community of customers is a fundamental principle of our business and our Company values." He added that upon learning of the DOJ investigation in 2020, the company conducted an internal review and has since significantly increased its compliance staff and created new roles within the department.
The settlement resolves investigations into BGS USA’s failures in internal controls and compliance systems. According to FinCEN, BGS transported more than $15 million from a money service business in San Diego to a separate money service business in Florida, and shipped hundreds of millions of dollars across the Mexican border on behalf of high-risk entities.
In response to the enforcement action and settlement, Brink’s has committed to strengthening its ethics and compliance program. This includes enhancing AML compliance controls, increasing training and awareness for employees regarding BSA obligations, improving internal supervision and audit processes, and implementing stricter due diligence on clients and transactions linked to cross-border currency shipments.
FinCEN imposed a civil monetary penalty of $37 million on Brink's, but credited BGS $20 million for its payment to the DOJ. The settlement amount is $42 million, to be paid over the next three years. Notably, the DOJ forgave approximately half of the penalty because Brink's beefed up its ethics and compliance program.
One of the high-risk entities involved in these transactions later pleaded guilty to Bank Secrecy Act violations. Brink's also purchased licensing rights, but the final beneficiary of these transactions was ultimately transmitted to a third-party not identified by BGS.
This settlement underscores the importance of adhering to federal AML laws, particularly for companies engaged in cross-border currency shipment operations. BGS USA’s violations involved willful AML failures in their cross-border currency shipment business, and the company has taken significant steps to rectify these issues and ensure compliance moving forward.
- Brink's Global Services USA (BGS USA) acknowledged the critical role of finance and business in its operations, as highlighted in Mark Eubanks' statement where he emphasized maintaining compliant operations for their global community of customers as a "fundamental principle of our business and our Company values."
- In an effort to strengthen its ethical and compliant operations, specifically in relation to anti-money laundering (AML) provisions, Brink's has pledged to invest in improving internal controls and compliance systems within its finance and business sectors.
