Ping Express U.S. LLC, a Texas-based company, has pleaded guilty to failure to maintain an effective AML program. The company allowed US customers to remit money to beneficiaries in various African nations, including Nigeria, for a charge.
Ping was legally obligated to report suspicious transactions to authorities. However, the company has admitted that it did not submit even one report in a duration of over 3 years, even though there was abundant suspicious activity. The company has also admitted to allowing over 1,500 customers to violate its self-defined transaction capping rules, going against its own AML program.
Ping also conducted its money transmission business in US states where it did not have the license to do so. Further, even though it portrayed itself as having a software to detect transmissions that began in states where it did not have the license to perform business, the software did not actually function. Overall, Ping allowed for overseas transmission of over $167 million in a period of nearly 3 years, with $160 million transmitted just to Nigeria. However, it self-admittedly failed to collect adequate customer information about the source of funds, purpose of transaction, etc.
As a result of its many failings, Ping now faces 5 years of probation and a maximum monetary penalty of $500,000.
Source: US Department of Justice