Brink’s Global Services USA (BGS USA), a subsidiary of The Brink’s Company, has reached a $42 million settlement with the U.S. Department of Justice (DOJ) and the Financial Crimes Enforcement Network (FinCEN) over alleged anti-money laundering (AML) violations and failures to comply with federal money-transmitting laws. The settlement follows an extensive investigation into Brink’s cross-border currency shipments and its compliance failures under the Bank Secrecy Act (BSA).
The case highlights the increasing scrutiny on financial service providers and the necessity for companies to adhere to stringent compliance programs to mitigate financial crime risks.
Key Findings from the Investigation
According to the DOJ and FinCEN, Brink’s Global Services USA failed to register as a money transmitter and did not implement adequate AML controls between 2018 and 2020. The company was found to have:
- Operated as an unlicensed money transmitting business by facilitating international currency shipments without proper authorization.
- Failed to develop and enforce a robust AML program, exposing its operations to potential misuse by criminal enterprises.
- Neglected to report suspicious activities that could indicate money laundering, thereby violating federal regulations designed to combat illicit financial transactions.
The DOJ emphasized that these failures created vulnerabilities that could have been exploited by criminals, money launderers, and illicit organizations seeking to move funds undetected through financial systems.
Settlement Terms and Financial Penalties
To resolve the matter, Brink’s has agreed to:
- Pay a total of $42 million over three years as part of the settlement.
- Forfeit $50 million to settle criminal allegations related to its unlicensed money transmission activities.
- Comply with enhanced oversight and reporting obligations to ensure future adherence to AML regulations.
FinCEN also imposed a $37 million civil money penalty against Brink’s for willful violations of the Bank Secrecy Act. The agency stated that Brink’s repeatedly failed to comply with its obligations, particularly in terms of proper AML registration, transaction monitoring, and suspicious activity reporting.
Brink’s Response and Compliance Enhancements
In response to the settlement, Brink’s President and CEO, Mark Eubanks, reaffirmed the company’s commitment to strengthening compliance measures. He emphasized that the company has been making significant improvements to its global Ethics & Compliance program and will continue enhancing its AML framework to align with regulatory expectations.
“As an industry leader, we are committed to continuous improvement and are always evolving our program to address changing compliance risks,” Eubanks stated. He added that Brink’s has taken corrective actions to ensure compliance gaps are addressed and that the company’s operations align with international financial regulations.
Implications for the Financial Services Industry
The Brink’s settlement serves as a strong warning to financial institutions, money transmitters, and businesses engaged in cash handling and currency shipments. Regulators are placing increasing pressure on companies to:
- Implement and maintain effective AML compliance programs.
- Ensure strict adherence to federal money transmission laws.
- Report suspicious financial activities in a timely manner.
Failure to meet these standards can result in severe financial penalties, reputational damage, and even criminal prosecution. The Brink’s case underscores the critical role of compliance teams, risk management strategies, and internal monitoring systems in preventing financial crime.
Looking Ahead
With financial crimes evolving rapidly, regulators are expected to increase oversight and introduce stricter AML compliance measures. Companies operating in the financial services and cash transportation industries must continuously update their risk management strategies to avoid non-compliance penalties and protect the integrity of global financial systems.
The Brink’s case highlights how compliance failures can lead to multi-million dollar settlements and how regulatory agencies are willing to pursue enforcement actions against even the most established financial service providers. This serves as a reminder to all businesses handling financial transactions—ensuring AML compliance is not just a legal obligation but a necessity for maintaining trust and operational integrity.
