United States: MoneyGram, After Spending Millions on Compliance, Wants Stronger Due-Diligence Rule

A proposal by regulators that would require financial institutions to collect and pass along sender and receiver details on more transactions has raised concerns at many firms about compliance costs. But one of the largest money-transfer companies is putting its weight behind the effort.

MoneyGram International Inc. says a more stringent standard would help the money-transfer industry improve protections to customers against fraud and other illicit activities, similar to what the company already has set up internally.

The Financial Crimes Enforcement Network and the Federal Reserve Board in October proposed an amendment to anti-money-laundering rules that would require financial institutions to collect, retain and transmit to other institutions certain information related to international transfers and transmittals of funds above $250, down from $3,000. The shift would increase the compliance burden for many financial institutions, some observers say.

The original full article can be found at wsj.com

(Picture: MAURITZ ANTIN/EUROPEAN PRESSPHOTO AGENCY)

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