The Laundry Man by Kenneth Rijock ( Penguin/Random House UK)

Friday, May 5, 2017


In a case which has been a nervous topic of conversation, among America's senior compliance officers, since it was filed, the former MoneyGram CCO, Thomas Haider, has now agreed to settle the Treasury Department litigation pending against him. Haider will pay a civil penalty of $250,000, and agree to be barred from any compliance position at a money service business (MSB), for a period of three years.

The allegations against Haider, which included charges that he presided over an ineffective AML program, and that he failed to terminate MoneyGram outlets with massive consumer fraud issues, caught the attention of compliance officers, whose fears of expanded personal liability, for compliance deficiencies in their workplace, now appear to on the way to becoming the rule, rather than the exception.

Whether there will be more cases like Haider remains to be seen, but direct and personal exposure, for AML/CFT deficiencies, has become a matter for concern for all who labor in the compliance field, especially given reported concerns that MoneyGram Sales staff interfered with Haider's ability to discharge his compliance responsibilities, but due to the settlement, evidence related to this allegation may never be made public. 

Readers who wish to review the complete text of the Stipulation and Order of Settlement may wish to access it here.

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