Getting Western Union on the hook

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Posted: Wed Jan 21, 2009 3:45 am

A big U.S. Bank notified our Company that our account with them would be closed, since we are an MSB (Money Services Business) which represents a high risk for them, in terms of Money Laundering and/or Terrorist Financing, which our customers could do through our Company. (We are a fully licensed Money Transmitter handling genuine family remittances from the U.S. to other countries, with strict Compliance Regulations).

However, they indicated that Western Union was the only MSB whose account they will maintain, because WU is respected and fully compliant!!

I replied to them, indicating how Western Union has one of the hemisphere's largest payout offices in Tijuana, Mexico. And how the vast majority of the money sent and paid there was destined for "coyotes" to pay them for taking illegal immigrants across the U.S. Border.

And I also let them know how Nigeria is one of WU's highest volume destination countries in the world, and that, again, the vast majority of the money going there is money scammed from victims in the U.S. and other countries. And that WU is the scammers' preferred "provider" due to their "no questions asked" policy, wheras a scammer only needs an MTCN number and a simple question and answer the same scammer provides the victim with.

I then went on to ask how come Western Union and all the Banks and regulators know the illegal nature of the money handled in these cases, and how strange and ironic it is that nobody seems to care nor is willing to do anything to stop this.

The Bank's VP attending our account found this information interesting, and asked my permission to forward my message to other high ranking executives within the Bank. Obviously, I replied "Please DO".

Of course, I know that despite these arguments, or whatever further proof I can provide them with, our account will never be reestablished. And my message will probably end up in all the trash bins in the Bank and WU will go on untouched. (When you are financially huge, like WU, you can literally get away with murder).

But then again, maybe something will happen. We will see.

Posted: Wed Jan 21, 2009 11:03 am

It's an interesting position - a good lawyer might be able to regain you your business with the bank if they don't boot WU, probably you can use competition and libel laws (they are saying you are more likely to handle illegal payments than a company with no restrictions - that sounds like a slander on your company's reputation to me).

The reason I suggest this is that it'll get things taken seriously - if everyone rolls over and takes it, big business like WU will profit from your loss, but if the bank now have to question if they can accept WU money and not yours on ethical grounds, you either weaken WU or you get your business back. The US loves litigation, but in this case it seems the clearest option for you - you can probably also sue for lost business and goodwill.

Posted: Wed Jan 21, 2009 4:44 pm

@manbiteslion: Under the umbrella of the Patriot Act, Bank Secrecy Act and other regulations that became famous after 9/11, a U.S. Bank can close your account at any time, without any specific reason, and there is absolutely nothing you can do about it.

The irony of all this is that the Bank in question is Wachovia, which as you know is in very deep financial shit, and after the government forced Citi group to take over to avoid bankruptcy, Wells Fargo came into the picture and will apparently handle the final bailout of this very troubled Bank.

And these MF's tell me that having our money in their Bank is a risk for them - You got to give it to them, they have balls! What we realize now is that all the people who had their money in Wachovia, including us, didn't know, but WE were the ones in great risk.

But anyway, nothing will happen as far as our account is concerned. And we will not initiate any legal suits either. Another thing we have learned is that you NEVER retain a lawyer, in the U.S. or anywhere else in the world. Because even if you are to win your case, you can be sure that YOUR lawyer will screw you unforgettably.

So, we will not get our account back. But, if we could also get WU's account in this Bank closed, it will not stop them at all; they have many other Banks; but it will hurt them quite a bit. And that's the way you kill a giant, dent by dent.

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