Financial affiliate of Brink agrees to pay $42 million to resolve claims made by FinCEN and DOJ
Brink's Global Services Agrees to Pay $42 Million to Settle Bank Secrecy Act Violations
Brink's Global Services USA, a leading armored car company, has agreed to pay $42 million in penalties to settle charges brought by federal regulators for violations of the Bank Secrecy Act (BSA) and related anti-money laundering (AML) compliance failures.
The settlement, announced on Thursday, reflects enforcement actions targeting deficiencies in armored car companies’ compliance programs. The settlement amount will be paid over the next three years.
According to the Financial Crimes Enforcement Network (FinCEN), Brink's Global Services USA moved large sums domestically and across the Southwest Border without required Anti-Money Laundering controls. FinCEN's Director Andrea Gacki stated that this action exposed the U.S. financial system to a heightened risk of money laundering, including from narcotics trafficking and other illicit activity.
Brink's Global Services USA admitted to willful violations of the Bank Secrecy Act and failed to implement an effective anti-money laundering program. The company shipped hundreds of millions of dollars across the Mexican border on behalf of high-risk entities, according to FinCEN. One of these high-risk entities later pleaded guilty to Bank Secrecy Act violations.
The civil monetary penalty imposed by FinCEN on Brink's Global Services USA was $37 million, but they were credited $20 million for their payment to the Department of Justice (DOJ). This is believed to be the first resolution with an armored car company related to Bank Secrecy Act violations, according to the DOJ.
In response to the DOJ investigation in 2020, Brink's Global Services USA conducted an internal review and significantly increased its compliance staff. They created new roles within the department, including a deputy chief ethics and compliance officer. The company's President and CEO, Mark Eubanks, stated that maintaining compliant operations is a fundamental principle of their business.
The implications of this settlement for armored car companies include heightened regulatory scrutiny, increased compliance obligations, potential industry-wide impact, and reputational risks. The settlement marks a significant regulatory enforcement milestone, highlighting the critical importance of adhering to BSA and AML requirements in the armored car industry.
- The armored car industry might face increased scrutiny from regulatory bodies, such as banking and insurance, fintech, and personal-finance, following the $42 million settlement Brink's Global Services USA agreed to pay for Bank Secrecy Act violations.
- Wealth-management firms and finance may need to reassess their risk management strategies to ensure compliance with anti-money laundering regulations, given the high-risk entities involved in Brink's Global Services USA's violations.
- General news outlets reported on the $42 million settlement, emphasizing the importance of businesses, including banking and insurance and finance, adhering to Bank Secrecy Act and anti-money laundering rules to prevent crime and injustice, such as narcotics trafficking.
- As the Department of Justice (DOJ) conducted investigations into armored car companies' Bank Secrecy Act compliance in 2020, investing in strengthening compliance programs and hiring dedicated compliance staff, like a deputy chief ethics and compliance officer, became essential for companies like Brink's Global Services USA to maintain their business operations.
- The $37 million civil monetary penalty imposed on Brink's Global Services USA is a reminder that fintech and other businesses must prioritize general-news aware of regulatory requirements in order to avoid costly settlements and reputational damage associated with Bank Secrecy Act violations.
