DOJ: Department of Justice Announces Phase Three of Compensation Process for Western Union Fraud Victims

• Over $436.9 million has already been distributed to more than 180,000 victims.
• An additional $3.4 million will be paid to 1,294 victims, with the petition deadline set for Dec. 31.

The Department of Justice began the third phase of the Western Union remission compensation process, reopening petitions for victims who did not previously submit claims. This follows Western Union's 2017 deferred prosecution agreement and $586 million forfeiture for violations including aiding and abetting wire fraud and Bank Secrecy Act breaches.

Victims who sent money transfers through Western Union between Jan. 1, 2004, and March 9, 2020, can now file for compensation. The DOJ has already distributed over $436.9 million to more than 180,000 victims, and an additional $3.4 million will be paid to 1,294 victims in this phase.

• $586 million Western Union forfeiture amount
• $436.9 million previously distributed to victims
• 1,294 victims receiving additional $3.4 million

• Review Western Union agent lists for complicit individuals referenced in DOJ's remission process.
• Update internal controls to address typologies such as grandparent, lottery, and romance scams targeting seniors.
• Verify eligibility criteria for compensation at www.westernunionremissionphase3.com and ensure petition forms are submitted before Dec. 31.

This story highlights the importance of robust AML/CFT controls and agent oversight, as Western Union's failures led to significant consumer fraud and regulatory action. Compliance officers should note the typologies exploited by fraudsters, especially those targeting seniors, and ensure their own programs address similar risks. The DOJ's ongoing compensation process underscores the need for vigilance in monitoring money transfer activities and responding to regulatory remediation requirements, including cooperation with law enforcement and timely victim restitution.