Shares of Western Union fell a lot more than three p.c on Thursday just after it agreed to spend $586 million to settle allegations that it failed to avoid criminals from working with its assistance for money laundering and fraud.
On Thursday, the money-transfer organization stated it arrived at an arrangement with the U.S. Justice Department and Federal Trade Fee. As a aspect of the arrangement, the organization will get steps to boost its anti-money laundering systems.
The sum paid to regulators will be made use of to reimburse buyers who had been victims of fraud from 2004 to 2012.
“We are committed to maximizing our compliance systems to avoid illicit activity on our network and shield shoppers who transfer money to mates, family and organizations,” Western Union stated in a statement.
With Thursday’s losses, the stock is down a lot more than two p.c yr to date.