Grimy Times

Thomas E. Haider, Bank Secrecy Act Violation, New York 2008

Published May 4, 2017

A former MoneyGram compliance officer has been held accountable for violating the Bank Secrecy Act.

Thomas E. Haider, the former chief compliance officer of MoneyGram International, Inc., has agreed to a three-year injunction barring him from performing a compliance function for any money transmitter, as well as a $250,000 fine.

The settlement resolves claims that Haider is liable under the Bank Secrecy Act for failing to ensure that MoneyGram implemented and maintained an effective anti-money laundering program and filed timely suspicious activity reports with FinCEN.

The Bank Secrecy Act requires financial institutions to implement and maintain effective anti-money laundering programs, file suspicious activity reports, and maintain customer identification programs.

According to the settlement, Haider admitted, acknowledged, and accepted responsibility for failing to terminate specific MoneyGram outlets after being presented with information that strongly indicated the outlets were complicit in consumer fraud schemes, failing to implement a policy for terminating outlets that presented a high risk of fraud, and structuring MoneyGram’s AML program such that information that MoneyGram’s Fraud Department had aggregated about outlets was not generally provided to the MoneyGram analysts who were responsible for filing SARs.

The settlement was approved yesterday by U.S. District Judge David S. Doty of the U.S. District Court for the District of Minnesota.

Defendant: Thomas E. Haider

Criminal Charges: Failure to implement and maintain an effective anti-money laundering program and filing timely suspicious activity reports

City and State: New York

Crime Date: 2003-2008

Sentence: Three-year injunction and $250,000 fine

Defendant’s Status: Settlement

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Source: https://www.justice.gov/usao-sdny/pr/acting-manhattan-us-attorney-announces-settlement-bank-secrecy-act-suit-against-former