OFAC agrees settlement with MoneyGram Payment Systems

OFAC has announced that MoneyGram Payment Systems, Inc has agreed to pay $34,328.78 to settle liability for 359 violations of multiple US sanctions regimes. Between March 2013 and April 2016, MoneyGram provided money transfer services to the Federal Bureau of Prisons, which allowed inmates to send and receive commissary payments. Even though MoneyGram were aware that some inmates could have been on OFAC’s list of specially designated nationals, it failed to screen inmates against the SDN list because it mistakenly believed that such screening was not required. As a result, payments were processed on behalf of US-designated inmates without an OFAC licence. When MoneyGram started screening inmates, it continued to process these payments due to screening, technological and human errors.

In addition, MoneyGram processed transactions on behalf of an additional blocked person, and processed transactions for individuals who had initiated commercial transactions involving Syria due to similar screening and technological failures. In total, 359 transactions worth $105,627 on behalf of approximately 40 individuals were processed through MoneyGram’s system in violation of US sanctions. See web notice.

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About Michael O'Kane

Michael O'Kane

Michael was called to the Bar in 1992 and prior to joining Peters & Peters was a senior specialist prosecutor at the Crown Prosecution Service Headquarters (CPS). He was a key member of a small specialist unit responsible for the prosecution of serious and high-profile fraud, terrorist,...

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